Whole Foods Market, Inc. (WFM): This Niche Industry Continues to Defy Skeptics

In its latest fiscal year, Natural Grocers by Vitamin Cottage Inc (NYSE:NGVC) outshone its primary competitors, with increases in revenues and adjusted operating income of 26.8% and 46.7%, respectively, versus the prior year. The company benefited from a 20% increase in its overall store base and a double-digit same store sales increase. While Natural Grocers is currently operating at negative cash flow, it is banking on national acceptance of its nutritional focus and enhanced efficiencies from a larger network of operations.

Healthy living and eating is definitely in vogue, as indicated by the operating results from the nation’s organic food purveyors. Consumers’ willingness to pay a premium for natural and organic food products has led to relatively high operating margins for organic grocers compared to traditional grocery stores. While The Fresh Market Inc (NASDAQ:TFM) and Natural Grocers by Vitamin Cottage Inc (NYSE:NGVC) are still regional stories, Whole Foods Market, Inc. (NASDAQ:WFM) has redefined its industry and belongs on investors’ radars.

The article This Niche Industry Continues to Defy Skeptics originally appeared on Fool.com.

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