Shares of Natural Grocers by Vitamin Cottage (NGVC) are soaring 9.94% in pre-market trading on Friday, following the company's impressive third-quarter fiscal 2025 results and upward revision of its full-year guidance. The natural and organic grocery retailer demonstrated strong performance across key metrics, surpassing analyst expectations and showcasing robust growth in comparable store sales.
Natural Grocers reported diluted earnings per share of $0.50 for Q3 FY2025, marking a significant 25% increase from $0.40 in the same period last year and beating analyst estimates of $0.49. The company's revenue grew to $328.7 million, up 6.3% year-over-year, despite facing a temporary setback due to a cybersecurity incident affecting its main distributor. Notably, the company achieved a remarkable 7.4% growth in daily average comparable store sales, driven by a 4.8% increase in transaction count and a 2.4% rise in average transaction size.
Based on these strong results, Natural Grocers has raised its fiscal 2025 outlook, now projecting comparable store sales growth of 7.25% to 7.75% and diluted earnings per share of $1.90 to $1.95, up from previous estimates. This positive news, combined with improvements in profitability and growing consumer demand for natural and organic products, is driving investor enthusiasm and contributing to the significant pre-market surge in NGVC's stock price.
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