All departments that comprise Sprouts Farmers Market saw growth in comparable store sales in the second quarter of 2016 as the retail chain posted sales of $1 billion, a 14 percent uptick from the same quarter last year.
However, those gains didn’t quite stack up to analysts’ expectations, which CEO Amin Maredia attributed to a challenging “deflationary environment.” Diluted earnings per share were $0.25.
Highlights from the quarter include:
- 12 new stores opened
- More than 1,000 employees hired during its first-ever national hiring day
- Implementation of new labor management system
- Expanded partnership with Amazon Prime Now, with Dallas becoming fourth major market for Sprouts delivery service
One bright spot was private label items, which continued to outpace the company as a whole in sales growth and comps. Sprouts has launched more than 200 new private label products year-to-date, including an organic kombucha line and a body care line.
Sprouts also continued to expand its foodservice offerings. Fifty-five stores now have expanded deli components such as salad bars, protein service case, fresh juice, specialty coffee and soup stations.
“We remain … focused on our strategic priorities around product innovation, customer engagement and building an organization for scale and long-term growth,” Maredia said.