Sprouts' Q3 Comps Rise, Net Income Declines

Although its net and comparable-store sales rose, Phoenix-based natural grocer Sprouts Farmers Market was hit by a significant decline in net income during the third quarter of its fiscal 2016.

During the 13-week period, which ended Oct. 2, net sales rose to $1 billion, a 15 percent increase from the same period in 2015. A 1.3 percent increase in comps drove growth during the period.

However, net income fell $8 million from the same period in 2015, a 25 percent decline from the same period in 2015. The results came from lower margins as a result of stepped-up promotions and an increase in store payroll, according to the company.

Sprouts also updated its guidance for the fiscal year, now anticipating year-over-year comps growth of 2 percent to 2.5 percent, compared with the previously expected 1.5 percent to 2.5 percent.