Sprouts grows same store sales again
Sprouts Farmers Market cited strong top-line sales growth as among the reasons for the retailer’s 4.8% comp increase for the first quarter.
Net sales for the first quarter ended March 29 were $857.5 million, a 19% increase compared to the same period in 2014. Net sales growth was driven by strong performance in new stores opened and a 4.8% increase in same store sales growth, the company said.
"Sprouts continues to be well positioned for today's growing number of health conscious consumers who are looking to eat healthier at affordable prices. In the first quarter, top-line sales growth remained strong for Sprouts, despite a difficult produce season, resulting in 32 consecutive quarters of positive comparable store sales growth," said Doug Sanders, president and CEO of Sprouts Farmers Market. "We remain excited about our new opportunities in 2015, including innovation in our private label, the ongoing testing of our new deli offerings, sales initiatives, and the opening of 27 new stores which includes our expansion into three new states.”
Net income at Sprouts rose 11.1% to $37.5 million. Gross profit for the quarter increased 15% to $257.8 million resulting in a gross profit margin of 30.1% of sales, a decrease of 90 basis points compared to the same period in 2014.The company said this was primarily driven by produce tightness due to adverse weather conditions and West Coast port strikes that limited product availability.
During the first quarter of 2015, the company opened 10 new stores: one each in Arizona, Georgia, Missouri and Utah; and two each in Alabama, California and Texas. Five additional stores, in five markets, have been opened in the second quarter to date, bringing 2015 new store openings to 15, for a total of 205 stores in 12 states as of May 7.The company expects to open 27 stores in 2015.
Sprouts said it expects comps to rise between 5.5% and 6.5% during the second quarter; for the full 53-week year it said it expects net sales growth of 20% to 22% and same store sales increases of 6% to 7%.