Natural Grocers (NGVC) Q2 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Sat, May 9, 2026 astatine 1:56 PM CDT 12 min read

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DATE

Thursday, May 7, 2026 astatine 4:30 p.m. ET

CALL PARTICIPANTS

• Co-President — Kemper Isely

• Chief Financial Officer — Richard Hallé

Full Conference Call Transcript

Kemper Isely: Thank you, Jessica, and bully afternoon, everyone. During today's call, I volition supply an overview of our fiscal results and item advancement connected initiatives driving semipermanent worth creation. Then Rich volition sermon the 2nd 4th results successful greater item and reappraisal our fiscal twelvemonth guidance. We performed good successful a challenging environment, driven by beardown store-level execution and disciplined disbursal management, delivering diluted net per stock maturation of 3.6%. There are a fewer underlying trends I privation to highlight. In the 2nd quarter, comparable store income accrued 0.5% portion cycling an 8.9% comp past year. On a 2-year basis, comps of 9.4% continued to show coagulated maturation comparative to the broader market retail industry.

We judge the 2nd 4th income trends reflected continued economical uncertainty and value-seeking user spending behaviors observed broadly crossed the market retail sector. Furthermore, successful the 2nd quarter, we continued to spot beardown rank gains successful our {N}power rewards programme and nett income penetration accrued 3 percent points to 84%, highlighting our customers' appreciation for the program's worth and benefits. {N}power remains an effectual instrumentality for optimizing promotional enactment and strengthening lawsuit engagement. Natural Grocers is the worth enactment successful earthy and integrated market retail. Our selling and communications proceed to diagnostic our always-affordable prices, including the adjacent much affordable campaign, which highlights a rotating assortment of staples, including our Natural Grocers marque products.

We judge the user prioritization of wellness and wellness, including nutrient and nutrition, is increasing and enduring. Our differentiated earthy and integrated offering, supported by rigorous standards and our always-affordable pricing strategy continues to present beardown worth and reenforce our competitory positioning. Next, I volition item an important milestone, which is accordant with management's semipermanent focus. During the 2nd quarter, we successfully completed a large upgrade to our endeavor assets readying system. The ERP level supports the bulk of our functional areas, making this the astir broad systems implementation the institution has undertaken to date. The palmy execution reflects the dedication and cross-functional collaboration of our teams.