Sprouts Sees 7% Sales Rise in Q2

Sprouts Farmers Market Inc. has reported a 7 percent increase in net sales during Q2, reaching $1.4 billion. The grocer noted strong performance in new stores — having opened six in this time period — but saw comparable-store sales fall flat, growing only 0.1 percent.

Net income was $35 million, compared with $42 million in Q2 of last year, while gross profit for the quarter increased 6 percent to $465 million, resulting in a gross profit margin of 32.8 percent.

Another notable change mentioned in the report was the hiring of Jack Sinclair as CEO on June 24, right before Q2's close.

“We are grateful to have Jack Sinclair join the Sprouts team as our new chief executive officer and are confident his insightful grocery experience makes him well positioned to strategically advance Sprouts’ unique model and improve its performance as the brand expands its footprint,” said Chip Molloy, interim CFO and board member of Sprouts.  

Sprouts expanded into two new states, with one store in Louisiana and one in New Jersey, during Q2. One lease, however, expired in Q2 and wasn't renewed. To date in Q3, the grocer has opened five additional stores, with plans to open 13 new stores total in the second half of 2019. 

For Q1 and Q2 combined, net sales have increased 8 percent compared to the same period in 2018, to $2.8 billion. 

Specializing in fresh, natural and organic products, Sprouts employs more than 30,000 associates and operates 300-plus stores in 21 states. The Phoenix-based company is No. 22 on Progressive Grocer’s 2019 Super 50 list of the top grocers in the United States.