Net sales increased 12.5 percent to $177.4 million in the second quarter for Lakewood, Colorado-based Natural Grocers by Vitamin Cottage. The increase is primarily due to an $18.0 million increase in new store revenue and a $1.7 million, or 1.0 percent, increase in daily average comparable store sales.
The 1.0 percent increase in daily average comparable store sales in the second quarter of fiscal 2016 followed a 5.6 percent increase in the second quarter of fiscal 2015 and was driven by a 1.0 percent increase in average transaction size and a consistent daily average transaction count when compared to the prior year. Daily average mature store sales decreased 1.3 percent in the second quarter of fiscal 2016. For fiscal 2016, mature stores include all stores open during or before fiscal 2011.
For the first half of the retailer’s fiscal 2016, net sales increased 13.7 percent to $345.2 million.
Net income decreased to $3.6 million vs. the comparable period in 2015, with diluted earnings per share of $0.16 in the second quarter. New income was $7.3 million with diluted earnings per share of $0.33 for the first half of fiscal 2016, a decrease of 18.3 percent vs. the first half of fiscal 2015.
EBITDA was $12.6 million in the second quarter and was $25.4 million in the first half of fiscal 2016. EBITDA decreased $1.9 million, or 13.0 percent, or 7.1 percent of sales, for the second quarter of fiscal 2016 vs. the comparable period in fiscal 2015. EBITDA decreased $0.6 million, or 2.2 percent, or 7.4 percent of sales, for the first half of fiscal 2016 vs. the same period in fiscal 2015.
During the second quarter of fiscal 2016, Natural Grocers opened five new stores, bringing its total store count as of March 31, 2016, to 112 stores located in 19 states. The company opened nine new stores in the first half of fiscal 2016 vs. eight new stores in the first half of fiscal 2015, resulting in a 17.9 percent and 17.3 percent unit growth rate for the 12-month periods ended March 31, 2016, and 2015, respectively.
The company plans to open a total of 23 new stores in fiscal 2016, which would result in an annual unit growth rate of 22.3 percent.
Natural Grocers opened an additional store in Spokane, Washington, on April 26, and has 24 signed leases for stores planned to open in fiscal 2016 and 2017 in Arizona, Colorado, Idaho, Iowa, Missouri, Nevada, North Dakota, Oregon, Texas, Utah and Washington.
