Natural Grocers (NGVC) Q2 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool Sun, May 10, 2026 at 1:56 AM GMT+7 12 min read NGVC Image source: The Motley Fool.

Kemper Isely: Thank you, Jessica, and good afternoon, everyone. During today s call, I will provide an overview of our financial results and highlight progress on initiatives driving long-term value creation. Then Rich will discuss the second quarter results in greater detail and review our fiscal year guidance. We performed well in a challenging environment, driven by strong store-level execution and disciplined expense management, delivering diluted earnings per share growth of 3.6%. There are a few underlying trends I want to highlight. In the second quarter, comparable store sales increased 0.5% while cycling an 8.9% comp last year. On a 2-year basis, comps of 9.4% continued to demonstrate solid growth relative to the broader grocery retail industry.

We believe the second quarter sales trends reflected continued economic uncertainty and value-seeking consumer spending behaviors observed broadly across the grocery retail sector. Furthermore, in the second quarter, we continued to see strong membership gains in our {N}power rewards program and net sales penetration increased 3 percentage points to 84%, highlighting our customers appreciation for the program s value and benefits. {N}power remains an effective tool for optimizing promotional activity and strengthening customer engagement. Natural Grocers is the value option in natural and organic grocery retail. Our marketing and communications continue to feature our always-affordable prices, including the even more affordable campaign, which highlights a rotating assortment of staples, including our Natural Grocers brand products.