Sprouts Farmers Market raised its full-year outlook on the heels of another strong quarter.
The fresh, natural and organic foods grocer reported profit of $95.3 million, or $0.94 a share, for the quarter ended June 30, up from $67.3 million, or $0.65 a share, in the year-ago period. Analysts had expected earnings per share of $0.79.
Net sales increased 12% $1.9 billion, topping analysts’ estimates of $1.84 billion. Comparable store sales rose 6.7%.
Sprouts, opened five new stores during the quarter, for a total of 419 stores in 23 states as of June 30, 2024. The company expects to open about 35 new locations this year. Sprouts’ new outposts are in keeping with the company’s smaller-format design concept, which features an approximate 23,000-sq.-ft. footprint. The stores feature a bright and airy farmers market experience with an open layout, community feel and produce at the heart of the space.
"Sprouts saw outstanding second quarter results, thanks to exceptional teamwork and strategic focus,” said Jack Sinclair, CEO of Sprouts Farmers Market, which is based in Phoenix. “Customers are responding to our healthy product assortment and our unique in-store experience. We are excited about the opportunities ahead."
For the full year, Sprouts expects net sales growth between 9% and 10% in fiscal 2024, up from its prior projection of between 7% and 8%. It also increased its same-store sales outlook, to between 4% and 5%, up from 2.5% to 3.5%.