Sprouts Farmers Market to open 35 stores in 2024; names new CFO

Sprouts Farmers Market continues to expand its smaller-store format.

The natural and organic grocer on Thursday reported better-than-expected third quarter results and said it opened 10 new stores during the quarter, for a total of 401 locations in 23 states. Sprouts, which recently confirmed plans to open six more stores in the Philadelphia area, is on track to open some 30 stores this year. And it's upping the total next year.

“Our pipeline remains strong with nearly 100 approved stores, 60 executed leases and the expected opening of approximately 35 stores in 2024, with close to 70% in the back half,” CEO Jack Sinclair said during the company's earnings call.

Sprouts new stores are in keeping with the chain’s smaller-format design concept, which features an approximate 23,000-sq-ft. footprint. The space offers offers a farmers market experience with an open layout, community feel and produce at the heart of the market.

For its third quarter, ended Oct. 1, Sprouts’ net sales rose 7.6% to $1.7 billion from the year-ago period.  Comparable store sales grew 3.9%. R-commerce sales rose 16%, representing 12.1% of  total sales.

The company reported diluted earnings per share of $0.64 and adjusted diluted earnings per share of $0.65,  compared to diluted earnings per share of $0.61 in the same period in 2022.

"We are pleased to report another solid quarter at Sprouts, with continued increases in both traffic and comparable store sales," stated Sinclair. "Our results signal the alignment of our 31,000 team members across merchandising, marketing, supply chain, and operational initiatives-- propelling our strategy forward."

New CFO

Also on Thursday, Sprouts nnounced the appointment of Curtis Valentine as CFO, effective Jan. 1. Valentine, who is currently Sprouts’ senior VP of finance, will succeed Lawrence (“Chip”) Molloy, who previously announced his intention to retire at the end of 2023.

Prior to joining Sprouts in 2015, Valentine served in financial management roles across multiple business units for seven years at PetSmart.

“We are delighted to elevate Curtis from our deep bench of finance talent to be our chief financial officer," stated Sinclair.  “Curtis and Chip have worked closely together for the last two years, and I believe there is no one better suited for the role to ensure a seamless transition as we continue to execute on our strategy and deliver value to our shareholders."

 Sprouts operates stores in Alabama, Arizona, California, Colorado, Delaware, Florida, Georgia, Kansas, Louisiana, Maryland, Missouri, Nevada, New Jersey, New Mexico, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia and Washington.