v3.26.1
Note 14 - Segment Reporting
 9 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

14. Segment Reporting

 

The Company has one operating segment, and therefore, a single reportable segment: natural and organic retail stores. This segment derives all of its revenue from the sale of grocery, dietary supplements, body care and other products at the Company’s stores located in the United States. The accounting policies of this segment are the same as those described in the Company's summary of significant accounting policies. The Company's chief operating decision maker (CODM) is its Co-President and Chairman of the Board. The CODM uses the segment's net income to assess performance against budget, make key operating decisions, and allocate capital resources, including the rate at which to invest in new or relocated stores. The measure of the segment’s assets is reported on the consolidated balance sheet as total assets and its depreciation and amortization expense is reported in Note 8, Property and Equipment.

 

The following table represents the significant categories and amounts that are regularly reviewed by the CODM and included in the segment's net income, dollars in thousands:

 

   

Three months ended

    

Nine months ended

  
   

June 30,

    

June 30,

  
   

2026

    

2025

    

2026

    

2025

  

Net sales

   $ 334,739       328,705       1,007,694       994,695  

Less:

                                

Cost of goods sold and occupancy costs

     236,731       230,426       708,384       695,844  

Direct operating costs

     79,004       78,293       237,093       237,826  

Pre-opening expenses

     1,288       24       2,296       877  

Other segment items (1)

     2,720       4,375       12,173       13,660  

Interest expense, net

     663       694       2,008       2,367  

Provision for income taxes

     3,260       3,288       9,899       9,477  

Net income

   $ 11,073       11,605       35,841       34,644  

 

(1) Other segment items include other general and administrative expenses, selling expenses, asset impairment and disposal net losses, amortization expense, store closure costs, lease and sublease income, and other miscellaneous income and expense.