Sprouts Farmers Market Reports Q2 Sales Growth Amid New Store Openings
Sprouts Farmers Market reported a 5% increase in second-quarter sales, driven by the opening of seven new stores. However, comparable-store sales declined by 1%, reflecting ongoing challenges with consumer spending. The Phoenix-based natural and organic grocer recorded net sales of $2.3 billion for the quarter ended June 28, up from the same period a year ago. Diluted earnings per share rose to $1.37 in Q2 compared to $1.35 in the prior-year period. CEO Jack Sinclair noted that new store performance and merchandising initiatives helped offset softer sales trends. Sprouts ended the quarter with strong liquidity, holding $224 million in cash and no borrowings on its credit facility. The company repurchased 900,000 shares for $70 million during Q2 and expects to open 42 new stores this fiscal year. For the third quarter, Sprouts forecasts a slight decline or modest increase in comparable-store sales and diluted earnings per share between $1.20 and $1.24.
Tickers: $SFM
Topics: comparable-store sales retail sales growth store expansion