LAKEWOOD, CO – Natural Grocers by Vitamin Cottage announced results for the third quarter of its fiscal year, projecting a revised outlook for its fiscal 2017 and curtailing expansion plans for the remainder of the year.

"While we had a challenging third quarter in terms of margin and earnings performance, I am encouraged by the improvements in our daily average comparable store sales and by mature store sales trends during the third quarter," said Kemper Isely, Co-President, in a company press release. "We believe these trends reflect the positive impact of our recent marketing initiatives. I was pleased with the strong sales lift we've experienced in our relocated Boulder store and am excited about the recent relocation of our downtown Denver store. Looking ahead, we have moderated new unit growth to reflect the challenging competitive environment and have no additional new store openings planned for the fourth quarter of fiscal 2017.”

Despite a trying grocery landscape, Isely noted the company is optimistic that it may resume expansion plans shortly.

“With comparable stores sales trending in the right direction, including good momentum exiting the third quarter, we intend to refocus our efforts on controlling expenses and improving earnings performance," Isely added.

Highlights from Natural Grocers third quarter and fiscal year thus far include:

• Net sales increased 8.6% to $194.7 million in the Q3 and increased 8.8% to $570.5 million in the first nine months of fiscal 2017
• Daily average comparable store sales increased 0.4% in the third quarter and decreased 0.7% in the first nine months of fiscal 2017
• Net income was $0.6 million with diluted earnings per share of $0.03 in the third quarter and was $5.7 million with diluted earnings per share of $0.25 in the first nine months of fiscal 2017
• EBITDA was $9.2 million in the third quarter and was $33.3 million in the first nine months of fiscal 2017
• Gross profit during the third quarter of fiscal 2017 increased 3.6% over the same period in fiscal 2016 to $52.8 million
• Gross profit during the first nine months of fiscal 2017 increased 5.5% over the same period last year to $159.1 million

The company’s revised fiscal 2017 outlook curbed its new store count at 14, and projected slightly lowered expectations for net income as a percentage of sales and capital expenditures raised from $36.7 to $39-$41. Same store sales growth, net income as a percentage of sales, and EBTIDA remained comparable, while projected diluted earnings per share are expected to grow from $0.25 to $0.31-$0.34.

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Natural Grocers