Why Natural Grocers by Vitamin Cottage Stock Popped Today

Actions of Natural Grocers by Vitamin Cottage (NGVC 15.80%) soared 15.8% today after the organic grocery chain reported strong quarterly results.

Sources of Natural Grocers' massive revenue beat

For its fiscal 2024 first quarter ended December 31, 2023, Natural Grocers' net sales increased 7.6% year over year to $301.8 million, including an increase of 6.2%. average daily same-store sales. Net income soared nearly 80% to $0.34 per share – beating expectations for earnings of $0.19 per share – helped by a combination of sales growth, pricing and management initiatives efficient operating expenses.

“Our differentiated offering of carefully curated natural and organic products and compelling value proposition continues to resonate with health-conscious consumers and set us apart in the marketplace,” said Kemper Isley, co-president of Natural Grocers.

What's next for Natural Grocers stock?

For the full fiscal year 2024, Natural Grocers also raised its outlook, calling for average daily same-store sales growth of 3% to 5% (up from 2% to 4% growth previously), which is expected translate into growth for the full fiscal year 2024. earnings per share of $1.02 to $1.12 (increased from previous guidance for a range of $1 to $1.10). Natural Grocers continues to plan to open four to six new stores this fiscal year, while renovating or relocating four to six existing locations.

Ultimately, it was a simple beat-and-raise performance that left bearish traders little room to argue. Even with shares of Natural Grocers up more than 40% in the year preceding this report, the stock is naturally rallying in response.

Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the securities mentioned. The Motley Fool has a disclosure policy.

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