Sprouts grows sales 21% in fourth quarter

The CEO of Sprouts Farmers Market Inc. credits consumers’ increasingly strong “desire to eat healthier” with his company’s big sales surge in the fourth quarter.

The Arizona-based company posted sales of $734.6 million, an increase of 21%, for the fourth quarter ended Dec. 28. Same store sales were up 8.5%.

"We are pleased to report another quarter of strong top-line sales growth for Sprouts and solid financial results for the fourth quarter of 2014," said Doug Sanders, president and CEO of Sprouts Farmers Market. "We finished 2014 with 191 stores resulting in unit growth of 14%, nearly $3 billion in revenue and industry leading same store sales growth of 9.9%. By leveraging our robust sales and remaining focused on managing store and overhead costs we produced record net income results for 2014. This year's outstanding results further demonstrate our belief that consumers' desire to eat healthier continues to build across the country and bolsters our confidence in the power of our model and our ability to successfully grow this company from coast to coast."

Net income for fiscal 2014 was $107.69 million, up from $51.3 million a year earlier. Earnings per share for the year were 70 cents, up from 37 cents a year earlier. Sprouts said it expected to open 27 new stores in fiscal 2015.

The company also announced that Doug Sanders, its president and chief executive officer, has been appointed to the company's board of directors. Sanders will fill the vacancy created by the retirement of George Golleher, a director since 2011.

Sanders, 45, joined Sprouts upon its founding in 2002 and has served in roles of increasing responsibility before assuming the role of president and chief executive officer in August 2012, including president from 2011 to August 2012, president and chief operating officer from 2005 to August 2011, chief administrative officer from 2004 to 2005, and vice president of information technology from 2002 to 2004.

"Doug's extensive knowledge of all aspects of Sprouts' business and operations and his unique understanding of its culture, personnel and strategies that he has gained from his over 13 years of service to the company make him uniquely qualified to join our board of directors," said Andrew Jhawar, chairman of the board of Sprouts Farmers Market. "In addition, on behalf of the full board, I want to thank George for his guidance, stability and service to the board of Sprouts during the company's growth from 2011 through our transition to a public company."

Sprouts employs more than 18,000 team members and operates more than 195 stores in 12 states.