With the second quarter of Vitamin Cottage’s natural grocery stores closing on March 31, the last few weeks have seen an early pantry surge in the wake of the COVID-19 outbreak.
Consumers are still socially distant and often eat at home, Chief Financial Officer Todd Desinger said during a revenue call with analysts on Thursday afternoon. An unchanging behavior is that consumers shop less often but buy more for a trip.
In the second quarter, daily average comparable store sales fell 7% from Q2 of fiscal year 2020. In the 2nd year of 2020, comparable store sales will be 17% higher than in 2019.
The company reported that the daily average comparable store sales increased by 10% compared to the results of 2021 for the year 2019. This year’s average transaction number is 13.9% lower than the 2nd year figure of 2019, but the average basket size is 8% higher than it was two years ago, Dixinger said.
During the call, Kember Iceley, co-chairman of the company, said the basket sizes would be high and the transaction would be low until most workers returned to their offices. The company has determined that the loss caused by the rapid cessation of lunch, a drink and snack of local employees leads to statistical changes.
“People who come to lunch buy a sandwich, a drink and a snack, that’s where we lost the number of our customers,” Isley said. “So far this year, we have not seen a big improvement in that category. We still see big baskets from our customers. They are accustomed to shopping often and buying big baskets.”
As expected by the company, the financial results of natural grocery stores were all lower in Q2 2021 than they were a year ago:
- Net sales are down 6.6% to 9 259.2 million.
- Total profit was $ 71.8 million, up from $ 77.8 million a year earlier.
- Operating income was 7 6.7 million compared to 3 13.3 million.
- Diluted earnings per share is 21 0.21 compared to 43 0.43.
- The adjusted EPIDTA.1 was 1.14.1 million compared to 21.1 million.
The board of directors announced on Thursday that the shareholders of the registry will receive a dividend of 7 cents per share on June 16 until June 1st.
Natural Grocers also reports results for the first six months of the 2021 fiscal year:
- Net sales were $ 24,524.2 million, compared to $ 507.6 million in FY2020.
- Total profit 4 was $ 144.9 million, up from $ 138.4 million.
- Operating income was $ 9.19 million, up from $ 16.1 million in the first half of 2020.
- Net income was $ 3.3 million, up from $ 11.9 million in the same period in fiscal 2020.
- Diluted earnings per share for the first six months of the 2021 fiscal year were $ 37.3.3, up from $ 0.51 a year earlier.
- The adjusted EPIDTA.4 was 27.4 million, compared. 31.7 million.
Employee and community support
Natural Grocery Stores continues to monitor its employees and the communities they serve, the company said throughout the COVID-19 epidemic and during the bizarre weather events of last winter.
The deep freeze of February led to the deaths of at least 125 people and property damage estimates of more than $ 10 billion – mostly in Texas, but also in the Pacific Northwest – by closing stores and reducing daily comparable sales by 70 basis points. For natural groceries.
In Texas, Natural Grocers provided free filtered water to stores, provided food drivers and raised $ 100,000 for Feeding Texas, the state’s largest hunger relief organization, in partnership with 21 food banks, Iceley said.
At the same time, Natural Crockers continued to provide pay and bonuses to employees affected by the storm. That increase pays $ 6 1.6 million in the second quarter, Aisley said. In 2020, the company implemented a permanent $ 1 per hour pay rise due to the COVID-19 epidemic and continues its duration bonus system Updated information on corona virus The webpage was last updated on May 4.
What lies ahead
Within stores, Natural Grocery expands its private label line of vitamins and supplements; By the end of June it will cover 150 formulas. Supplements are an important part of the company’s business because they fulfill the core principles of nutrition, quality and value of natural grocery stores.
Natural Grocery’s private label lineup includes six more products, including the bottle horn. Private label products account for 7.3% of the company’s sales – the same percentage they had in Q4 2020.
The grocery program Npower now has 1.4 million members, a 17% increase over a year ago and a 5% increase from the first quarter of 2021. Sales for Npower members account for 70% of the company’s total sales, Iceley said.
Natural Crocker opened a store in Jefferson City, Mo., and redesigned it in Dallas in the second quarter. During the same period a year ago, the company opened two new stores.
Due to construction issues, the retailer is reducing the number of stores it plans to open this year with four or five redesigns or transfers. Natural Grocery currently operates 159 stores in 20 states.
“We are lowering our expectations for new store openings and store relocations / remodels in fiscal 2021,” Dixinger said. “New store adjustment and relocation / redesign expectations are driven by delays we experience in the construction process and equipment delivery.”
Natural Crocers has signed leases for stores in Colorado, Missouri, Nevada and Oregon, all of which are expected to open in fiscal 2021. A new, larger store in Pueblo, Colo is scheduled to open in the parking lot from Thursday the 19th. Old store that was the company’s old 17th Colorado location.
This article first appeared New Hope Network, A supermarket news sister website.