PHOENIX, Ariz. – (Globe Newswire) – November 8, 2022 – Sprouts Farmers Market, Inc. (Nasdaq: SFM) today reported results for the 13-week third quarter ended October 2, 2022.
“We are encouraged by our performance in the third quarter, including total sales growth of 5%, comparable store sales growth of 2.4% and earnings per share growth of 9%,” said Jack Sinclair, chief executive officer of Sprouts Farmers Market. “I thank the team for their collaboration and commitment in delivering these results and most importantly, their dedication to helping our customers discover better, healthier eating. We are excited about bringing the holiday season to life in our stores and are well-positioned to benefit from the ongoing health and wellness trends.”
Third Quarter Highlights:
- Net sales totaled $1.6 billion; a 5% increase from the same period in 2021
- Comparable store sales growth of 2.4%
- Diluted earnings per share of $0.61; compared to diluted earnings per share of $0.56 in the same period in 2021
- Opened 1 new store, resulting in 379 stores in 23 states as of October 2, 2022
Leverage and Liquidity in Third Quarter 2022
- Ended the quarter with $316 million in cash and cash equivalents and a $250 million balance on its $700 million revolving credit facility
- Repurchased 1.6 million shares of common stock for a total investment of $44 million
- Generated cash from operations of $307 million and invested $71 million in capital expenditures, net of landlord reimbursement, year-to-date thru October 2, 2022
Fourth Quarter and Full-Year 2022 Outlook
“Due to our strong performance to date, we are raising our full-year outlook,” said Chip Molloy, chief financial officer of Sprouts Farmers Market. “We remain focused on controlling the controllable to deliver strong results and create sustainable shareholder value for the long-term.”
The following provides information on our full-year 2022 outlook:
- Net sales growth: 4.5% – 5.0%
- Comparable store sales growth: approximately 2%
- Adjusted diluted earnings per share: $2.32 to $2.36
- Unit growth: 16 new stores
- Capital expenditures (net of landlord reimbursements): $120M to $135M
The following provides information on our fourth quarter 2022 outlook:
- Comparable store sales growth: approximately 2.0%
- Adjusted diluted earnings per share: $0.35 to $0.39
Third Quarter 2022 Conference Call
Sprouts will hold a conference call at 5 p.m. Eastern Standard Time on Tuesday, November 8, 2022, during which Sprouts executives will further discuss third quarter 2022 financial results.
A webcast of the conference call will be available through Sprouts’ investor relations webpage located at investors.sprouts.com. Participants should register on the website approximately ten minutes prior to the start of the webcast.
A webcast replay will be available at approximately 8:00 p.m. Eastern Standard Time on November 8, 2022. This can be accessed with the following link.
Important Information Regarding Outlook
There is no guarantee that Sprouts will achieve its projected financial expectations, which are based on management estimates, currently available information and assumptions that management believes to be reasonable. These expectations are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management. See “Forward-Looking Statements” below.
Forward-Looking Statements
Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact (including, but not limited to, statements to the effect that Sprouts Farmers Market or its management “anticipates,” “plans,” “estimates,” “expects,” or “believes,” or the negative of these terms and other similar expressions) should be considered forward-looking statements, including, without limitation, statements regarding the company’s outlook, growth, opportunities and long-term strategy. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this release. These risks and uncertainties include, without limitation, the company’s ability to execute on its long-term strategy; the company’s ability to successfully compete in its competitive industry; the company’s ability to successfully open new stores; the company’s ability to manage its growth; the company’s ability to maintain or improve its operating margins; the company’s ability to identify and react to trends in consumer preferences; product supply disruptions; equipment supply disruptions; general economic conditions that impact consumer spending or result in competitive responses; accounting standard changes; the current inflationary environment and future potential inflationary and/or deflationary trends; the impact of the COVID-19 pandemic; and other factors as set forth from time to time in the company’s Securities and Exchange Commission filings, including, without limitation, the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The company intends these forward-looking statements to speak only as of the time of this release and does not undertake to update or revise them as more information becomes available, except as required by law.
Corporate Profile
Sprouts is the place where goodness grows. True to its farm-stand heritage, Sprouts offers a unique grocery experience featuring an open layout with fresh produce at the heart of the store. Sprouts inspires wellness naturally with a carefully curated assortment of better-for-you products paired with purpose-driven people. The healthy grocer continues to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. Headquartered in Phoenix, and one of the largest and fastest growing specialty retailers of fresh, natural and organic food in the United States, Sprouts employs approximately 31,000 team members and operates approximately 380 stores in 23 states nationwide. This year, Sprouts celebrates its 20th year anniversary. To learn more about Sprouts, and the good it brings communities, visit about.sprouts.com.
View Consolidated Statements of Income, Consolidated Balance Sheets, Consolidated Statements of Cash Flows and Non-GAAP Financial Measures documents here.