Natural Grocers by Vitamin Cottage, Inc. (NGVC) SEC Filings & Earnings Calls

Gross margin pressure from unfavorable sales mix, higher shrink, and freight costs.

“The decrease in gross margin was driven by lower product margin primarily due to an unfavorable change in sales mix, as well as higher merchandise inventory shrink and freight costs.” · word for word

Supply chain disruption from cybersecurity incident

“the Company’s primary distributor, United Natural Foods, Inc. (UNFI), experienced a cybersecurity incident that temporarily impacted UNFI’s ability to fulfill orders and distribute products to the Company’s stores, resulting in product shortages in June and July 2025 and, consequently, lost sales and gross profit.” · word for word

Gross margin pressure from shrink and freight costs

“The decrease in gross margin was driven by lower product margin primarily due to an unfavorable change in sales mix, as well as higher merchandise inventory shrink and freight costs.” · word for word

Cybersecurity incident at distributor impacting sales

“In June 2025, the Company’s primary distributor, United Natural Foods, Inc. (UNFI), experienced a cybersecurity incident that temporarily impacted UNFI’s ability to fulfill orders and distribute products to the Company’s stores, resulting in product shortages in June and July 2025 and, consequently, lost sales and gross profit.” · word for word

Merchandise inventory shrink impacting gross margin

“The decrease in gross margin during the six months ended March 31, 2026 was driven by lower product margin primarily due to higher merchandise inventory shrink during the three months ended December 31, 2025.” · word for word

Challenging consumer environment with modest sales growth.

“We performed well in a challenging environment” · word for word

Inventory shrink impacted gross margin in first half.

“lower product margin primarily due to higher inventory shrink in the first quarter” · word for word

Comparable store sales growth deceleration

“Daily average comparable store sales increased 1.7% for the three months ended December 31, 2025 compared to an increase of 8.9% for the three months ended December 31, 2024.” · word for word

Gross margin pressure from inventory shrink

“The decrease in gross margin during the three months ended December 31, 2025 was driven by lower product margin primarily due to higher inventory shrink.” · word for word

Gross margin pressure from higher inventory shrink.

“The decrease in gross margin was driven by lower product margin primarily due to higher inventory shrink.” · word for word

Controlled company with concentrated ownership

“Isely Family Group 13,328,760 57.9 %”

Related party transactions with Isely family

“The Operating Company is a party to real estate leases with members of the Isely family or entities controlled by the Isely family.” · word for word

Supplier concentration and disruption

“UNFI is our single largest third-party supplier, accounting for approximately 69% of our total purchases in fiscal year 2025.” · word for word

Cybersecurity incident at key supplier

“In June 2025, UNFI experienced a cybersecurity incident that temporarily impacted its ability to fulfill orders and distribute products to our stores, resulting in product shortages in June and July 2025.” · word for word

Gross margin pressure in Q4 from lower product margin.

“Gross margin decreased by 10 basis points to 29.5% during the fourth quarter of fiscal 2025, compared to 29.6% in the fourth quarter of fiscal 2024. The decrease in gross margin was driven by lower product margin.” · word for word