Q4 2024 Natural Grocers by Vitamin Cottage Inc Earnings Call Transcript
Key Points
- Natural Grocers by Vitamin Cottage Inc (NGVC) reported a 7.1% increase in daily average comparable store sales for the fourth quarter, with a 14% increase on a two-year basis.
- The company achieved a 53% increase in net income for the fourth quarter, driven by sales and margin improvements combined with effective expense management.
- Gross margin improved by 100 basis points in the fourth quarter, attributed to store occupancy cost leverage and higher product margins.
- Natural Grocers by Vitamin Cottage Inc (NGVC) announced a 20% increase in its quarterly cash dividend, reflecting strong financial performance and commitment to returning capital to shareholders.
- The {N}power rewards program saw increased penetration, reaching 81% of net sales in the fourth quarter, up from 77% a year ago, enhancing customer loyalty and engagement.
- Store expenses increased by 10.2% in the fourth quarter, primarily due to higher compensation expenses and long-lived asset impairment charges related to a store closure.
- The dietary supplement sales comp was only slightly positive, indicating slower growth in this category compared to others.
- The company closed one store subsequent to the quarter-end, which may indicate challenges in certain locations.
- Natural Grocers by Vitamin Cottage Inc (NGVC) anticipates that year-over-year gross margin will be relatively flat in fiscal 2025, suggesting limited margin expansion.
- The economic environment remains uncertain, which could impact consumer spending and the company's growth projections for fiscal 2025.
Good day. Ladies and gentlemen, welcome to the Natural Grocers fourth quarter and fiscal year 2024 earnings conference call. (Operator Instructions) As a reminder, today's call is being recorded. I would now like to turn the conference over to Ms. Jessica Thiessen, Vice President, Treasurer for Natural grocers. Ms. Thiessen, you may begin.
Good afternoon and thank you for joining us for the Natural Grocers by Vitamin Cottage fourth quarter and fiscal year 2024 earnings conference call. On the call with me today are Kemper Isley, Co-President; Todd Dissinger, Chief Financial Officer; and Richard Halle, our incoming Chief Financial Officer.
As a reminder, certain information provided during this conference call contains forward-looking statements based on current expectations and assumptions and are subject to risks and uncertainties. Actual results could differ materially from those described in the forward-looking statements due to a variety of factors including the
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