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Private label growth strong in Sprouts Farmers Market's second quarter
Overall sales grew 14 percent in the second quarter of 2016 as Sprouts maintains its focus on product innovation, customer engagement and building a strong team.
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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.
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