Sprouts Farmers Market to Open 35 New Stores This Year

Specialty grocer's 2023 earnings exceed original expectations
Marian Zboraj, Progressive Grocer
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Sprouts' net sales totaled $6.8 billion in 2023, a 7% increase from 2022.

Sprouts Farmers Market Inc. has high expectations for 2024. Amid the release of its impressive results for its fourth quarter and fiscal year ending Dec. 31, results, the specialty grocer released its outlook for the year. 

The outlook includes net sales growth of 5.5% to 7.5%, comparable-store sales growth of 1.5% to 3.5%, and adjusted EBIT of $397 million to $412 million. Adjusted diluted earnings per share are expected to be $2.85 to $2.95. Plus, the company anticipates approximately 35 new stores for the year.  

Why so confident? Look to Sprouts’ recent quarterly results. In Q4, the retailer’s net sales totaled $1.7 billion, an 8% jump from the same period in 2022. It experienced comparable-store sales growth of 3.3%. Diluted earnings per share were 49 cents, compared with 42 cents for the same period in 2022. 

Then there are Sprouts' full-year results. Net sales totaled $6.8 billion, a 7% increase from 2022. It achieved comparable-store sales growth of 3.4%. Diluted earnings per share were $2.50. Adjusted diluted earnings per share were $2.84, compared with $2.39 in the prior year.

In 2023, Sprouts opened 30 new stores, acquired two previously licensed stores and closed 11 stores, resulting in 407 stores in 23 states as of Dec. 31, 2023.

"Our fourth-quarter performance demonstrates our continued strength as a leading specialty grocer," said Sprouts CEO Jack Sinclair. "Our 2023 results exceeded our original expectations, with solid comparable sales each quarter, positive traffic, accelerating unit growth and increasing customer engagement. I am confident our strategy and our passionate, dedicated team will continue to create shareholder value."

To help support future growth, Sprouts will take advantage of its newly opened 337,000-square-foot distribution center in the Southern California city of Fullerton. The facility is supporting deliveries to nearly 100 Sprouts locations within a 250-mile radius. The distribution center also helps expand the grocer’s partnerships with local farms and growers.

Phoenix-based Sprouts Farmers Market employs about 32,000 associates and operates more than 400 stores in 23 states nationwide. The company is No. 51 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America

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