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Sprouts Farmers Market sees Q2 earnings, sales increase from 2017Sprouts Farmers Market sees Q2 earnings, sales increase from 2017

Year-to-date sales are up 13 percent, thanks to strong new store performance.

Victoria A.F. Camron

August 2, 2018

2 Min Read
Sprouts Farmers Market sees Q2 earnings, sales increase from 2017

Second-quarter sales at Sprouts Farmers Market increased 12 percent, thanks to 2 percent same-store sales growth, increased store traffic and strong productivity at the company’s new stores, the company’s CEO said Thursday.

“Sprouts continues to be an industry leader in innovation and health, and our value prices continue to resonate with our customers,” Amin Maredia, chief executive officer of Sprouts Farmers Market, said during Thursday’s earnings call.

“Our new stores are performing very well, indicating the strength and differentiation of our brand when entering new communities in existing markets and new geographies across the country,” he continued. “Our existing business also continues to perform very well, with continued positive traffic and tonnage performance. Traffic has been consistent throughout the year and remains strong.”

The company opened seven new stores, including the first one in South Carolina, during the second quarter. Sprouts now has more than 300 stores in 17 states, and plans to open 30 more this year, Maredia said.

Private-label products and the company’s drive to make its Market Corner Deli a shopping destination for convenient meals are also behind the company’s sales growth, he said. Private-label sales have increased more than 25 percent, accounting for 13 percent of the company’s total revenue.

Through its partnership with Instacart, Sprouts now offers delivery from 190 stores in most major markets.

Chief Financial Officer Bradley Lukow reported that Sprouts invested in its employees, allocating $10 million in increased wages, benefits and training because of the federal tax cuts. The company saved about $30 million through the tax reform, he said.

Based on the company’s performance so far this year, officials are increasing the bottom of their earnings per share guidance 2 cents to $1.24-$1.28, which would result in EPS growth of 23-27 percent for the full year.

Sprouts reported several other highlights from the second quarter:

  • Sales totaled $1.3 billion for the quarter.

  • Net income reached $42 million.

  • Diluted EPS of 32 cents, up 10 percent from the second quarter of 2017.

  • Gross profit rose to $380 million, an 11 percent increase from 2017. The gross profit margin was 28.8 percent, 10 basis points lower than the same period in 2017.

Year-to-date results are also positive:

  • Net sales totaled $2.6 billion, up 13 percent from the first half of 2017.

  • Net income increased to $108 million, a 24 percent increase from 2017.

  • Diluted EPS was 82 cents, a 32 percent increase from 62 cents in same period of 2017.

  • Gross profit grew to $767.5 million from $679.3 million in 2017, an increase of 13 percent.

About the Author(s)

Victoria A.F. Camron

Digital content specialist, New Hope Network

Victoria A.F. Camron was a freelance writer and editor contracted with New Hope Network from 2015 until April 2022, when she was hired as New Hope Network's digital content specialist—otherwise known as the web editor.

As she continues the work she has done for years—covering the natural products industry for NewHope.com and Natural Foods Merchandiser; writing up earnings calls and other corporate news; and curating roundups of trends and information for the website—she is thrilled to be an official part of the New Hope team. (She doesn't mind having paid holidays and vacations again, though!) Victoria also compiled and edited newsletters, and served as interim content director for Delicious Living in 2016.

Before working as a freelancer, she spent 17 years in community newspapers in Longmont, Colorado, and St. Charles and Wheaton, Illinois. Victoria is a Colorado native and a graduate of Metropolitan State College of Denver.

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