Natural Grocers (NGVC) Q3 2026 Earnings Call Transcript

Natural Grocers reported Q3 2026 comparable store sales growth of 1.2%, accelerating from 0.5% in Q2, driven by a 3.1% increase in average basket size. Transaction counts fell 1.8%, pointing to fewer customer visits offset by higher spending per trip. Gross margin contracted 60 basis points to 29.3%, pressured by unfavorable sales mix, increased inventory shrink, and elevated freight costs.

The company narrowed full-year guidance, trimming the top end of comparable sales expectations to 1.5%-2.0% from 1.5%-2.5% and diluted EPS to $2.07-$2.11 from $2.07-$2.15. Management maintained store expansion plans at 6-7 new locations for the year. NGVC highlighted 84% penetration of its {N}power loyalty program and announced a DoorDash partnership to expand e-commerce reach.

The mixed quarter shows improving topline momentum but margin headwinds that forced guidance adjustments, leaving full-year EPS potential capped at the lower end of the original range.