Sprouts Q1 Revenue, Profit Decline
Sprouts Farmers Market has begun to cycle the pandemic sales gains it experienced in 2020.
For the first quarter ended April 4, the retailer reported net sales of $1.6 billion, a 4% decrease from the same period in 2020. Same-store sales decreased 9.4%; two-year same-store sales increased 2.2%. Net income was $83 million, compared to net income of $92 million in the same period in 2020. Diluted earnings per share was 70 cents, compared with $92 million and 78 cents, respectively, in 2020.
“I am pleased with how Sprouts has navigated the current environment as we begin to cycle the onset of the COVID-19 impact from last year,” said Jack Sinclair, CEO of Sprouts Farmers Market. “Sprouts achieved strong financial results in the first quarter, building on our successful strategic improvements from 2020, which enhanced our profitability to support our long-term growth. We continued to move our strategy forward with the opening of our sixth fresh distribution center, providing our customers with even more affordable, local and organic produce, rooted in Sprouts’ unique farmer’s market heritage. As we look forward, I am confident we will continue to enhance our position as a fast-growing health-focused specialty retailer.”
Gross profit for the quarter decreased 1.3% to $586 million, resulting in a gross profit margin of 37.2%, an increase of 114 basis points compared to the same period in 2020.This increase is attributed to sustainable strategic changes, including promotional activities and shrink initiatives.
Sprouts did not open any new stores in the first quarter, ending the quarter with a total of 362 stores in 23 states. The grocer will open its first store in 2021 and third store in the Reno-Sparks, Nevada, area at 299 East Plumb Lane on May 12.
The company opened a total of 22 new stores in 2020. The grocer plans to open approximately 20 stores in 2021.
Phoenix-based Sprouts, which employs more than 35,000 team members at 360-plus stores in 23 states, is No. 45 on The PG 100, Progressive Grocer's 2020 list of the top food and consumables retailers in North America.
