Sprouts’ Comps Up for 40th Consecutive Quarter
Sprouts Farmers Market has recorded its 40th consecutive quarter of comparable-store sales, along with a solid rise in net sales, during its first quarter of fiscal 2017.
In the fiscal period ended April 2, comps grew 1.1 percent – with two-year comps rising 5.9 percent – while net sales increased 14 percent from the same period in 2016, driven by the rise in comps and strong performance from newly opened stores. Net income was flat at $46 million compared to the same period a year prior.
“In an industry with continued deflationary challenges, I am extremely proud of the Sprouts team for delivering our 40th consecutive quarter of positive comps, strong new store productivity and new market entries in Florida and North Carolina,” said Amin Maredia, Sprouts CEO. “Sprouts was the first grocer to combine fresh, natural and organic foods with value prices, and we continue to differentiate through our high level of customer service and unique product offerings. Our focus remains on our strategic priorities of category innovation, developing team members, enhancing the customer experience and investing in infrastructure to support our long-term growth.”
Gross profit, meanwhile, rose 10 percent to $337 million, resulting in a gross profit margin of 29.8 percent, a drop of 110 basis points compared to the same period in 2016. This primarily reflects cycling the positive impact experienced in the year prior due to deflation without the corresponding promotional environment, as well as higher occupancy costs.
Sprouts opened eight new stores during the quarter, one each in Arizona, Florida, Kansas and North Carolina, and two each in California and Georgia. Seven additional stores have been opened in the second quarter to date, resulting in a total of 268 stores in 15 states as of May 4.
Headquartered in Phoenix, Sprouts employs more than 25,000 team members and operates more than 260 stores in 15 states.