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Apr 04, 2021
Sprouts Q1 2021 Earnings Report
Sprouts' first quarter results decreased compared to the same period in 2020, influenced by the onset of the COVID-19 impact from the previous year.
Key Takeaways
Sprouts Farmers Market reported a decrease in net sales by 4% to $1.6 billion and a comparable store sales decline of 9.4%. Net income was $83 million, with diluted earnings per share at $0.70. The company is navigating the current environment by building on strategic improvements from 2020 and expanding its fresh distribution network.
Net sales reached $1.6 billion, a 4% decrease year-over-year.
Comparable store sales decreased by 9.4%, but showed a two-year growth of 2.2%.
Net income was $83 million, compared to $92 million in the same period last year.
Diluted earnings per share were $0.70, down from $0.78 in the previous year.
Forward Guidance
Sprouts has adjusted its fiscal 2021 outlook, anticipating flat to slightly up net sales growth and a decrease in comparable store sales growth, while planning for approximately 20 new store openings.
Positive Outlook
- Net sales growth expected to be flat to up slightly.
- Approximately 20 new stores are planned to open.
- Adjusted EBIT is projected to be between $305M and $325M.
- Adjusted diluted earnings per share are expected to be $1.87 to $2.00.
- Effective tax rate is anticipated to be approximately 25%.
Challenges Ahead
- Comparable store sales growth is expected to be down low to mid-single digits.
- The impact of the COVID-19 pandemic on the U.S. economy and the company’s fiscal 2021 results is still uncertain.
- Projections are based on management estimates and assumptions that are subject to economic, competitive, and other uncertainties.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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