Q2 2025 Natural Grocers by Vitamin Cottage Inc Earnings Call

[music].

Good day, ladies and gentlemen.

Operator: Good day, ladies and gentlemen. Welcome to the Natural Grocers second quarter fiscal year 2025 earnings conference call. At this time, all participants are in a listen-only mode.

Welcome to the natural grocers second quarter fiscal year 2025 earnings conference call.

At this time all participants are in a listen only mode.

Operator: Later we will conduct a question and answer session and instructions will be given at that time. As a reminder, today's call is being recorded.

Later, we will conduct a question and answer session and instructions will be given at that time.

As a reminder.

Today's call is being recorded.

Speaker Change: I'd now like to turn the conference over to MS. Jessica Deason.

Jessica Thiessen: I'd now like to turn the conference over to Ms. Jessica Thiessen, Vice President, Treasurer for Natural Grocers. Ms. Thiessen, you may now begin. Good afternoon and thank you for joining us for the Natural Grocers By Vitamin Cottage second quarter fiscal year 2025 earnings conference call.

Mr. Deasy: Vice President Treasurer for natural grocers, Mr. Deasy, you may now begin.

Speaker Change: Good afternoon, and thank you for joining us for the natural grocers by vitamin Cottage second quarter fiscal year, 'twenty 25 earnings conference call.

Jessica Thiessen: On the call with me today are Kemper Isely, Co-President, and Richard Hallet, Chief Financial Officer. As a reminder, certain information provided during this conference call contains forward looking statements based on current expectations and assumptions, and are subject to risks and uncertainties. Actual results could differ materially from those described in the forward looking statements due to a variety of factors, including the risks and uncertainties detailed in the company's most recently filed forms 10-Q and 10-K.

Speaker Change: On the call with me today are Kemper Idly co President and Richard Hale, Chief Financial Officer as a reminder, certain information provided during this conference call contains forward looking statements based on current expectations and assumptions and are subject to risks and uncertainties actual results could differ materially from those described in.

The forward looking statements due to a variety of factors, including the risks and uncertainties detailed in the company's most recently filed Form 10-Q and 10-K the company undertakes no obligation to update forward looking statements.

Jessica Thiessen: The company undertakes no obligation to update forward looking statements.

Jessica Thiessen: Our remarks today include references to adjusted EBITDA, which is a non-GAAP measure. Please see our earnings release for a reconciliation of adjusted EBITDA to net income.

Speaker Change: Our remarks today include references to adjusted EBITDA, which is a non-GAAP measure. Please see our earnings release for a reconciliation of adjusted EBITDA to net income.

Jessica Thiessen: Today's earnings release is available on the company's website, and a recording of this call will be available on the website at investors.naturalgrocers.com.

Kemper Idly: Today's earnings release, it's available on the company's website and a recording of this call will be available on the website at investors Dot natural grocers Dot com now I will turn the call over to Kemper.

Kemper Isely: Now I will turn the call over to Kemper. Thank you, Jessica, and good afternoon, everyone. Our second quarter results were exceptional as we delivered record sales and earnings. On today's call, I will highlight financial results, including key drivers of our performance, discuss what we are seeing in consumer trends, and provide an update on our initiatives.

Kemper Idly: Thank you Jessica and good afternoon, everyone. Our second quarter results were exceptional.

Kemper Idly: We delivered record sales and earnings on today's call I will highlight financial results, including key drivers of our performance discuss what we are seeing in consumer trends and provide an update on our initiatives then rich will discuss our second quarter results in greater detail and review our updated.

Kemper Isely: Then Rich will discuss our second quarter results in greater detail and review our updated fiscal year 2025 guidance. Sales growth remained robust in the second quarter, and we continue to believe that the quality, breadth, and longevity of our sales performance are extraordinary for grocery retail. Daily average comparable store sales increased 8.9% and accelerated to 16.4% on a two-year basis. The transaction count comp increase of 5.9% marked our ninth consecutive quarter with positive traffic. The transaction size comp increased 2.8% and was our 5th consecutive quarter with an increase in items per basket and modest inflation. Additionally, sales performance was strong across vintages.

Fiscal year 2025 guidance.

Kemper Idly: Sales growth remained robust in the second quarter, and we continue to believe that the quality breadth and longevity of our sales performance our extra ordinary for grocery retail.

Kemper Idly: Daily average comparable store sales increased 8.9% and accelerated the 16, 4% a two year basis, the transaction count comp increase of 5.9% marked our ninth consecutive quarter with positive traffic.

Kemper Idly: The transaction size comp increased two 8% and was our fifth consecutive quarter with an increase in items per basket and modest inflation.

Kemper Idly: Additionally, sales performance was strong across vintages remarkably.

Kemper Isely: Remarkably, stores five years and older had an 8.5% comp for the quarter, underscoring the strong competitive position of our stores. We are also very pleased with the performance of the newer vintages. We believe the quality, breadth, and duration of our sales performance are indicators of the overall strength of our business model and productivity of our initiatives. We believe there is a continuing trend in consumer prioritization of health and wellness. including a heightened focus on food and nutrition, and that we are well positioned to capitalize on this dynamic. New customers are increasingly drawn to our relevant value offering of high quality natural and organic products at always affordable prices.

Kemper Idly: Stores five years and older had an eight 5% comp for the quarter underscoring the strong competitive position of our stores.

Kemper Idly: We are also very pleased with the performance of the newer vintages.

Kemper Idly: We believe the quality breadth and duration of our sales performance are indicators of the overall strength of our business model.

Kemper Idly: And productivity of our initiatives. We believe there is a continuing trend in consumer prioritization of health and wellness.

Kemper Idly: Including a heightened focus on food and nutrition.

Kemper Idly: And that we are well positioned to capitalize on this dynamic.

Kemper Idly: New customers are increasingly drawn to a relevant value offering of high quality natural and organic products at always affordable prices.

Kemper Isely: Furthermore, we are enhancing customer engagement through our effective marketing initiatives. Compelling Offers and N-POWER Rewards Program. We believe that communicating and establishing our differentiated position in the marketplace has been instrumental in generating our strong sales performance over the past several years. For the second quarter, our focus on operational execution, including effective promotions and store productivity initiatives, combined with expense leverage from higher sales, resulted in an operating margin improvement of 150 basis points. and a 60% increase in diluted earnings per share.

Kemper Idly: Furthermore, we are enhancing customer engagement to our effective marketing initiatives compelling.

Kemper Idly: Compelling offers and empower rewards program, we believe that communicating and establishing our differentiated position in the marketplace has been instrumental in generating our strong sales performance over the past several years.

Kemper Idly: For the second quarter, our focus on operational execution, including effective promotions and store productivity initiatives combined with expense leverage from higher sales resulted in an operating margin improvement of 150 basis points.

Kemper Idly: And a 60% increase in diluted earnings per share base.

Kemper Isely: Based on the strong second quarter results, we are increasing our fiscal 2025 outlook for daily average comparable store sales growth and diluted earnings per share. In light of the broader macro environment, we are monitoring consumer trends closely. To date, we have not observed any indicators of softer demand for our products, trade-down or fewer items per basket. Second-quarter sales remain strong across product categories, with our highest comparable store sales growth in our most differentiated offerings. These include meat, in which we are committed to offering humanely raised and sustainably sourced meats, fish, and seafood. Produce, which is 100% organic.

Kemper Idly: Based on the strong second quarter results, we are increasing our fiscal 'twenty twenty-five outlook for daily average comparable store sales growth and diluted earnings per share.

Kemper Idly: In light of the broader macro environment, we are monitoring consumer trends closely to date, we have not observed any indicators of softer demand for our products trade down or fewer items per basket.

Kemper Idly: Second quarter sales remained strong across product categories with our highest comparable store sales growth in our most differentiated offerings. These include me in which we are committed to offering humanely raised is sustainably sourced meat fish and seafood produce which is 100% organic.

Kemper Idly: And our dairy category, which includes 100% pasture raised dairy and a minimum egg standard of free rate further.

Kemper Isely: And our dairy category, which includes 100% pasture-raised dairy and a minimum egg standard of free range. Furthermore, our robust and balanced sales trends were relatively consistent throughout the second quarter and have continued into the third quarter. We have confidence in our ability to navigate the uncertain economic environment in front of us. Our customer base is diverse in terms of age and income demographics. and our customers share a significant focus on health and sustainability. We believe that behaviors adopted by consumers to support their health and wellness are enduring. Additionally, our customers have historically been resilient during periods of economic uncertainty.

Kemper Idly: Furthermore, our robust and balanced sales trends were relatively consistent throughout the second quarter.

Kemper Idly: And have continued into the third quarter.

Kemper Idly: We have confidence in our ability to navigate the uncertain economic environment in front of us our customer base is diverse in terms of age and income demographics, and our customer share a significant focus on health and sustainability, we believe that behaviors adopted by consumers to support their health and wellness are enduring.

Kemper Idly: Additionally, our customers have historically been resilient during periods of economic uncertainty, we believe that our distinctive offering of high quality national and organic products at always affordable prices positions us to attract and retain customers across a spectrum of macro.

Kemper Isely: We believe that our distinctive offering of high-quality, natural and organic products at always affordable prices positions us to attract and retain customers across a spectrum of macro conditions.

Kemper Idly: With conditions.

Kemper Isely: As we look to the remainder of fiscal 2025 and beyond, we will continue to focus on our key priorities to drive growth, including communicating our differentiated offering, further enhancing customer engagement through our Empower Rewards Program, expanding our selection of Natural Grocers brand products, and driving new store development and existing store productivity.

Kemper Idly: As we look to the remainder of fiscal 2025 and beyond we will continue to focus on our key priorities to drive growth, including communicating our differentiated offering.

Kemper Idly: Further enhancing customer engagement through our empower rewards program expanding our selection of natural grocers brand products and driving new store development and existing store productivity.

Kemper Isely: I will now highlight the second quarter performance of key initiatives. During the second quarter, net sales penetration of our NPower Rewards Program was 81%, up from 78% a year ago.

I will now highlight our second quarter performance of key initiatives.

Kemper Idly: During the second quarter net sales penetration of our empower rewards program was 81% up from 78% a year ago.

Kemper Isely: Reflecting continued positive trends in customer loyalty and engagement, Natural Grocers brand products are affordable offerings that meet our high standards for nutritional health and sustainability. In the second quarter, our branded products accounted for 8.6% of total sales, up from 8.5% a year ago, driven in part by new products. During the quarter, we launched 22 new Natural Grocers brand items. and we're excited about the new offerings in the queue for the balance of the year.

Kemper Idly: Reflecting continued positive trends in customer loyalty and engagement natural grocers brand products are affordable offerings.

Kemper Idly: That meet our high standards for nutritional health and sustainability in the second quarter, our branded products accounted for $8, 6% of total sales.

Kemper Idly: From eight 5% a year ago, driven in part by new products during the quarter, We launched 22, new natural grocers brand items.

Kemper Idly: And we're excited about the new offerings in the queue for the balance of the year during the second quarter, we opened new stores in Brownsville, Texas in Waco, Texas.

Kemper Isely: During the second quarter, we open new stores in Brownsville, Texas and Waco, Texas. Store unit growth and development continues to be a priority of our company.

Kemper Idly: Store unit growth and development continues to be a priority of our company during.

Kemper Idly: During fiscal 2025, we plan to open three to four new stores and relocate or remodel two to four stores in the future. We plan to open six to eight new stores per year and.

Kemper Isely: During fiscal 2025, we plan to open three to four new stores and relocate or remodel two to four stores. In the future, we plan to open six to eight new stores per year.

Kemper Isely: In closing, I would like to thank our Good4U crew for their commitment to operational execution and exceptional customer service that were instrumental in driving our results. We are fortunate to have crew who share an affinity for our company's founding principles and are dedicated to ensuring that our stores, operations, and supply chain reflect these values.

Kemper Idly: In closing I would like to thank our good for you crew for their commitment to operational execution and exceptional customer service that were instrumental in driving our results. We are fortunate to have crew who share an affinity for our company's founding principles and our dedicated to ensuring that our stores operations.

Kemper Idly: Supply chain reflected these values with that I will turn our call over to rich to discuss our financial results and outlook.

Richard Hallet: With that, I will turn our call over to Rich to discuss our financial results and outlook. Thank you, Kemper, and good afternoon. For the second quarter, net sales increased 9% from the prior year period to $335.8 million. Daily average comparable store sales increased 8.9%, and on a two-year basis, the increase accelerated to 16.4%. Our daily average comparable transaction count increased 5.9%. Our daily average comparable transaction size increased 2.8 percent, including modest product cost inflation of an estimated 2 percentage points on an annualized basis and an increase in items per basket of approximately 1 percentage point.

Rich: Thank you Kemper and good afternoon for the second quarter net sales increased 9% from the prior year period to $335.8 million.

Rich: Daily average comparable store sales increased eight 9% and on a two year basis, the increase accelerated to 16, 4%.

Rich: Our daily average comparable transaction count increased five 9%.

Rich: Our daily average comparable transaction size increased two 8%, including modest product cost inflation of an estimated two percentage points on an annualized basis and an increase in items per basket of approximately one percentage point.

Rich: For the second quarter gross margin increased 100 basis points to 33% driven by higher product margin, primarily attributed to effective promotions.

Richard Hallet: For the second quarter, gross margin increased 100 basis points to 30.3 percent, driven by higher product margin primarily attributed to effective promotions. Store expenses as a percentage of net sales decreased 80 basis points, reflecting expense leverage. Administrative expenses as a percentage of net sales increased 20 basis points driven by technology expenses and higher compensation. Operating income increased 55.9% to $17.6 million. Operating margin increased 150 basis points. Net income increased 64.6% to $13.1 million and diluted earnings per share increased 60% to $0.56 in the second quarter. Adjusted EBITDA increased 33.3% to $26.3 million.

Rich: Store expenses as a percentage of net sales decreased 80 basis points, reflecting expense leverage.

Rich: Administrative expenses as a percentage of net sales increased 20 basis points, driven by technology expenses and higher compensation.

Rich: Operating income increased 55, 9% to $17 $6 million.

Rich: Operating margin increased 150 basis points.

Rich: Net income increased 64, 6% to $13 $1 million.

Rich: And diluted earnings per share increased 60% to 56 cents in the second quarter.

Rich: Adjusted EBITDA increased 33, 3% to $26 $3 million.

Richard Hallet: Turning to the balance sheet and cash flow. We ended the second quarter in a strong liquidity position, including $21.2 million in cash and cash equivalents, no outstanding borrowings, and $70.3 million available to borrow on our revolving credit facility. During the first six months of fiscal 2025, we generated cash from operations of $36.7 million and invested $15.9 million in net capital expenditures, primarily for new and relocated stores, resulting in free cash flow of $20.8 million.

Rich: Turning to the balance sheet and cash flow.

Rich: We ended the second quarter in a strong liquidity position.

Rich: Including $21 $2 million in cash and cash equivalents.

Rich: No outstanding borrowings and $78 $3 million available tomorrow on our revolving credit facility.

Rich: During the first six months of fiscal 2025, we generated cash from operations of $36 $7 million in.

Rich: And invested $15 $9 million and net capital expenditures, primarily for new and relocated stores.

Rich: Resulting in free cash flow of $28 million.

Rich: We are raising our fiscal 'twenty 25 outlook for daily average comparable store sales growth and diluted earnings per share and updating our outlook for new stores.

Richard Hallet: We are raising our fiscal 2025 outlook for daily average comparable store sales growth and diluted earnings per share and updating our outlook for new stores. Our revised outlook includes the following, three to four new store openings compared to our prior outlook of four to six, two to four store relocations or remodels, daily average comparable store sales growth between 6.5 and 7.5%, an increase compared to our prior outlook of 6.5 and 7%, diluted earnings per share between $1.78 and $1.86, an increase compared to our prior outlook of $1.57 and $1.65, and capital expenditures of $36 to $44 million to support our growth initiative.

Rich: Our revised outlook includes the following.

Rich: Three to four new store openings compared to our prior outlook of four to six.

Rich: Two to four store relocations and Remodels.

Rich: Daily average comparable store sales growth between six five and seven 5%.

Rich: An increase compared to our prior outlook of between five and 7%.

Rich: Diluted earnings per share between $1, 78, and $1 86 and.

Rich: An increase compared to our prior outlook of $1 57, and $1 65 and.

Rich: And capital expenditures of $36 million to $44 million to support our growth initiatives. Our outlook reflects the strong first half results and considers a range of scenarios for the second half.

Richard Hallet: Our outlook reflects the strong first half results and considers a range of scenarios for the second half. Consistent with our previous guidance, our expectation is that sales comps will moderate somewhat in the second half of the year as we continue to cycle relatively strong comps in the prior year. Additionally, our sales comp guidance considers a range of scenarios given uncertainty around tariff impacts and the broader macro environment. Our outlook for year-over-year gross margin is flat to slightly lower, primarily depending on promotional investment. Lastly, we expect that year-over-year store expenses as a percentage of sales will be relatively flat to slightly lower.

Rich: Consistent with our previous guidance our.

Rich: Our expectation is that sales comps will moderate somewhat in the second half of the year as we continued to cycle relatively strong comps in the prior year.

Rich: Additionally, our sales comp guidance considers a range of scenarios.

Rich: Given uncertainty around tariff impacts and the broader macro environment.

Rich: Our outlook for year over year gross margin is flat to slightly lower primarily.

Rich: Primarily depending on promotional investments.

Rich: Lastly, we expect a year over year store expenses as a percentage of sales will be relatively flat to slightly lower.

Rich: In closing while there is some uncertainty in the market, we believe our value offering of high quality natural and organic products at always affordable prices.

Richard Hallet: In closing, while there is some uncertainty in the market, we believe our value offering of high quality natural and organic products at always affordable prices is particularly relevant to consumers. Furthermore, we will continue to focus on our key priorities to drive growth for the remainder of fiscal 2025 and beyond.

Rich: Is particularly relevant to consumers.

Rich: Furthermore, we will continue to focus on our key priorities to drive growth for the remainder of fiscal 2025 and beyond.

Operator: Now we'd like to open the line for questions. Thank you. We will now begin the question and answer session. To ask a question you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2.

Rich: Now we'd like to open the line for questions. Thank you.

Rich: We will now begin the question and answer session.

Rich: You ask a question you May press Star then one on your telephone keypad.

Rich: If you were using a speakerphone please pick up your handset before pressing the keys.

Rich: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.

Rich: At this time, we will pause momentarily to assemble our roster.

Operator: At this time, we will pause momentarily to assemble our roster. Once again, to ask a question, you may press star, then 1.

Rich: Yeah.

Rich: Once again to ask a question you May press Star then one.

Rich: Okay.

Rich: Yeah.

Scott Mushkin: Our first question comes from Scott Mushkin with R5 Capital. Please go ahead.

Scott Moskin: Our first question comes from Scott Moskin with RFID capital. Please go ahead.

Speaker Change: Scott much can your line has been done muted you May proceed with your question.

Ryan: Scott Mushkin, your line has been unmuted, you may proceed with your question. Hey, sorry guys, um, this is Ryan on for Scott, uh, congrats on the great result. Um...

Scott Moskin: Hey, sorry, guys. This is Ryan on for Scott Congrats on that.

Scott Moskin:

Ryan: So, just on the loyalty program, what are you guys doing for the consumer? https://www.vitamincottageinc.com Well, we have a few things that we do. We send out individualized offers to our members. and those offers. are tailored towards their shopping habits. So if they're a supplement customer, they'll get an offer that's offered. x amount off of a certain amount of purchase and supplements or they'll get... https://www.vitamincottageinc.com and then on an everyday basis. https://www.vitamincottageinc.com Rebate, if you click and load the offer. So that's a big draw for our really loyal customers. get our best pricing on eggs and avocados.

Speaker Change: So just on the loyalty program what are you guys doing.

Scott Moskin: For the consumer.

Speaker Change: Perks promos.

Scott Moskin: Alright.

Well, we have a few things that we do.

Yeah.

Scott Moskin: We send out individualized offers to our members.

Scott Moskin: And.

Scott Moskin: Those offers.

Scott Moskin: Our tailored towards their shopping habits.

Scott Moskin: Uh huh.

Scott Moskin: From a customer offer that.

Scott Moskin: Offers.

Scott Moskin: Certain amount of purchasing supplements or they'll get.

Scott Moskin: The specific deals that are only if they only are offered.

Scott Moskin: Right.

Scott Moskin: And then on an everyday basis.

Scott Moskin: Sure It is.

Scott Moskin: Essentially works out to a 1%.

Scott Moskin: The rebate issue.

Scott Moskin: Click and load offers.

Scott Moskin: That's a big draw.

Scott Moskin: Really loyal customers and then.

Scott Moskin: To get our best pricing.

Ryan: You have to be a and Power Member, and that's a really big draw for our company. And so those are some of the things. And then also the in-store specials are all in-power driven. Essentially, that's what... Okay, awesome.

Scott Moskin: Avocado.

Scott Moskin: And I remember.

Scott Moskin: That's a.

Scott Moskin: Really big draw for our members.

Scott Moskin: So those are those are some of the things and then also the in store specials are all in power.

Scott Moskin: Driven.

Scott Moskin: Yeah.

Scott Moskin: Okay.

Scott Moskin: But essentially that's what we do.

Speaker Change: Okay Awesome and then have you seen your consumer basket size going down just given the economy.

Ryan: And then, have you seen your consumers' basket size going down, just given the economy? No, our basket size has stayed very steady. It's been studied for the last several quarters. Awesome.

Speaker Change: No our basket size has stayed very steady.

Speaker Change: Okay.

Speaker Change: It's been steady for the last several quarters.

Speaker Change: Awesome.

Ryan: And then in terms of adding six to eight new stores the next year, do you plan to expand at any other market?

Speaker Change: And then in terms of adding six to eight new stores in the next year do you plan to expand in any other market.

Ryan: We actually are going into another state. and we'll be announcing that location here in the next couple. Okay, awesome, um...

Speaker Change: We actually are going into another state.

Speaker Change: We'll be announcing that location here in the next couple of months.

Speaker Change: Okay awesome.

Speaker Change:

Ryan: How were your in-stock levels, inventory, and distribution? They're about back to where they were pre-pandemic, so they're running about 97% in stock.

Speaker Change: How are your in stock levels inventory and distribution.

Speaker Change: Distribution.

Speaker Change: They are about back to where they were pre pandemic. So there.

97% in stock.

Speaker Change: Okay, and then do you guys offer pickup and delivery.

Ryan: Okay, and then do you guys offer pickup and delivery? Yes, we do, via Instacart. Okay, so are people, um, are your customers using that a lot and are you offering free delivery or is that just through It's just through free, it's just through Instacart.

Speaker Change: Yes, we do.

Speaker Change: Mister car.

Speaker Change: Okay.

Speaker Change: Are your customers using that a lot and are you offering free delivery or is that just curious.

Speaker Change: It's just too.

Speaker Change: It's just through the card.

Ryan: It's been steady at about 2% of our sales for the last Okay, and then will that, at any rate, be in-house?

Speaker Change: It's been steady at about 2% of our sales for the last two years.

Speaker Change: Okay, and then will that.

Speaker Change: Any rate be in house would you change from using in CCAR just to natural grocers.

Ryan: Will you change from using Instacart just to Natural Grocers? No, we'll be using third-party delivery. It's really not, it wouldn't be profitable for us to take it. Gotcha.

Speaker Change: Well be using third party delivery.

Programs for <unk>.

Speaker Change: Delivery services, it's really not.

Speaker Change: It wouldn't be profitable for us to take it in house.

Speaker Change: Got you and then on the Remodels are you guys going to up your Remodels next year in the back half of the year.

Ryan: And then on the remodels, are you guys going to up your remodels next year or in the back half of the year? We do that on an opportunistic basis, so it's hard to say how many remodels we'll have for an extra week. We have two in the queue right now, and it definitely could go, it'll probably go two to four.

Speaker Change: We do that on an opportunistic basis. So it's hard to say, how many remodels will have for an extra week, we up to in the queue right now.

Speaker Change: It definitely could go it will probably go to.

Speaker Change: Two to four more by the time.

Speaker Change: The year rolls through.

Speaker Change: Okay.

Ryan: Okay, and then last question, so demographically, you know, there's been trends on all sorts of social media, you know, health and wellness, everything like that. Are you seeing your age demographic kind of trend downwards, or is it stable kind of the middle age? I think that we've had, we've picked up quite a few Millennials, I mean there's a lot of people that like our authentic messaging and so... That resonates really well with with the younger demographic. And so that's definitely helping our traffic.

Speaker Change: Okay and then last question. So demographically you know there's been trends on all sorts of social media, you know health and wellness everything like that are you seeing your age demographic kind of trend downwards or is it is it stable kind of the middle age.

Speaker Change: I think that we've had.

Speaker Change: We picked up quite a few millennials I mean, theres a lot of people that like our authentic.

Speaker Change: Messaging.

Speaker Change: So.

Speaker Change: And that resonates really well with.

Speaker Change: With the younger demographic and so that's definitely helping our traffic growth.

Speaker Change: Yeah.

Speaker Change: Got it. Thank you so much guys. Thanks.

Ryan: Got it.

Ryan: Thank you so much, guys. Thanks for the call today. Thanks for the questions. Have a nice rest of the day. Thank you. You as well. Thank you.

Thanks for the call today, thanks for the question.

Speaker Change: The rest of the day.

Speaker Change: You as well.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: We have no further questions I would now like to hand, the conference over to Campbell I sleep for closing remarks.

Operator: We have no further questions.

Kemper Isely: I would now like to hand the conference over to Kemper Isely for closing remarks. Thank you. It's a beautiful day here in Colorado, and we are proud to be a Colorado. And we are proud of our second quarter results, which reflect a continuation of the positive trends we have experienced for more than two years.

Speaker Change: Thank you its a beautiful day here in Colorado.

Speaker Change: We are proud to be a Colorado company.

Speaker Change: We are proud of our second quarter results, which reflect any ration of the positive trends we have experienced for more than two years. Thank you for joining us and have a great day.

Kemper Isely: Thank you for joining us and have a great day. Bye.

Speaker Change: The conference has now concluded. Thank you for attending the natural grocers second quarter fiscal year 'twenty 25 earnings Conference call you may now disconnect.

Operator: The conference has now concluded.

Operator: Thank you for attending the Natural Grocers second quarter fiscal year 2025 earnings conference call. You may now disconnect. © BF-WATCH TV 2021 © BF-WATCH TV 2021

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: [music].