Company: NGVC
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001437749-25-003026
Chunk: 78

Company: Natural Grocers by Vitamin Cottage, Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 8
Chunk 78
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 million, or 11.3%, to $98.8 million for the three months ended December 31, 2024 compared to $88.8 million for the three months ended December 31, 2023. Gross profit reflects earnings after product and store occupancy costs. Gross margin increased to 29.9% for the three months ended December 31, 2024 compared to 29.4% for the three months ended December 31, 2023. The increase in gross margin during the three months ended December 31, 2024 was primarily driven by store occupancy cost leverage and higher product margin.

Store expenses

Store expenses increased $5.5 million, or 8.1%, to $73.5 million for the three months ended December 31, 2024 compared to $68.0 million for the three months ended December 31, 2023. The increase in store expenses was primarily driven by higher compensation expenses. Store expenses as a percentage of net sales were 22.3% and 22.5% for the three months ended December 31, 2024 and 2023, respectively. The decrease in store expenses as a percentage of net sales reflects expense leverage.

Administrative expenses

Administrative expenses increased $2.1 million, or 22.4%, to $11.5 million for the three months ended December 31, 2024 compared to $9.4 million for the three months ended December 31, 2023. The increase in administrative expenses was driven by higher compensation expenses, including costs related to our Chief Financial Officer transition, and technology expenses. Administrative expenses as a percentage of net sales were 3.5% and 3.1% for the three months ended December 31, 2024 and 2023, respectively.

Pre-opening expenses

Pre-opening expenses were $0.4 million and $0.5 million for the three months ended December 31, 2024 and 2023, respectively.

Interest expense, net

Interest expense, net of capitalized interest, was $0.9 million for each of the three months ended December 31, 2024 and 2023.

Income taxes

Income tax expense increased $0.3 million for the three months ended December 31, 2024 to $2.5 million compared to $2.2 million for the three months ended December 31, 2023. The Company’s effective income tax rate was approximately 20.