In This Article:
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Total Sales: $2.2 billion, up 19% compared to the same period last year.
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Comparable Store Sales: Increased by 11.7%.
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Diluted Earnings Per Share: $1.81, a 62% increase from the previous year.
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Gross Margin: 39.6%, an increase of 129 basis points year-over-year.
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SG&A Expenses: $623 million, with $0.79 basis points of leverage.
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Net Income: $180 million.
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Operating Cash Flow: $299 million.
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Capital Expenditures: $49 million net of landlord reimbursement.
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Store Openings: 3 new stores, totaling 443 stores across 24 states.
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Share Repurchases: $219 million returned to shareholders, 1.6 million shares repurchased.
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Cash and Cash Equivalents: $286 million at the end of the quarter.
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E-commerce Sales Growth: Approximately 28%, representing 15% of total sales.
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Sprouts Brand Contribution: 24% of total sales.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sprouts Farmers Market Inc (NASDAQ:SFM) reported a strong first-quarter sales increase of 19%, driven by an 11.7% rise in comparable store sales and robust new store performance.
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Diluted earnings per share reached $1.81, marking a 62% increase compared to the same period last year.
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The company launched a new loyalty program aimed at enhancing customer engagement and driving sales growth.
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E-commerce sales grew approximately 28%, representing 15% of total sales for the quarter, indicating strong performance across all partners.
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Sprouts Farmers Market Inc (NASDAQ:SFM) has a healthy balance sheet, generating $299 million in operating cash flow and returning $219 million to shareholders through share repurchases.
Negative Points
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The company faces supply constraints and strong sales pressure on in-stock levels, resulting in additional shrink leverage.
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Store closure and other costs totaled approximately $2 million for the quarter, related to exiting leases and disaster recovery charges from the California wildfires.
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Sprouts Farmers Market Inc (NASDAQ:SFM) anticipates comp sales to moderate as they cycle higher comps from late 2024.
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The company is experiencing some cannibalization from new store openings, particularly in more established markets, impacting overall sales growth.
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There are ongoing challenges with self-distribution of fresh meat and seafood, which may not fully benefit the company until next year.
Q & A Highlights
Q: How are you thinking about potential reinvestment given the decelerating trend in your comp outlook and macro uncertainties? A: Curtis Valentine, CFO, explained that they are investing in areas like loyalty, supply chain systems, IT, and self-distribution, similar to last year. They aim for long-term sustainable earnings growth and expect growth to moderate as the year progresses.