Natural Grocers (NGVC) Q3 2026 Earnings Call Transcript

Natural Grocers reported Q3 2026 results with accelerating comparable store sales growth of 1.2% (up from 0.5% in Q2), driven by a 3.1% increase in basket size despite a 1.8% decline in transaction counts. However, gross margin contracted 60 basis points to 29.3% due to unfavorable sales mix, higher inventory shrink, and elevated freight costs. The company refined full-year guidance, lowering comp 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, while maintaining new store openings at 6-7 locations. Management highlighted strong{N}power loyalty program penetration at 84% and launched a DoorDash partnership for expanded e-commerce capabilities.