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Jul 02, 2023

Sprouts Q2 2023 Earnings Report

Sprouts reported solid results driven by positive traffic, an enhanced supply chain, and continued product innovation.

Key Takeaways

Sprouts Farmers Market reported a 6% increase in net sales to $1.7 billion and a comparable store sales growth of 3.2%. Diluted earnings per share were $0.65, with adjusted diluted earnings per share increasing by 25% to $0.71. The company opened 6 new stores, bringing the total to 391 stores in 23 states.

Net sales totaled $1.7 billion, a 6% increase from the same period in 2022.

Comparable store sales growth was 3.2%.

Diluted earnings per share reached $0.65, and adjusted diluted earnings per share was $0.71, a 25% increase from the previous year.

Opened 6 new stores, resulting in 391 stores in 23 states.

Total Revenue
$1.69B
Previous year: $1.6B
+6.1%
EPS
$0.71
Previous year: $0.57
+24.6%
Comparable Store Sales Growth
3.2%
Previous year: -10%
-132.0%
Gross Profit
$626M
Previous year: $550M
+13.8%
Cash and Equivalents
$259M
Previous year: $221M
+17.5%
Free Cash Flow
$63.3M
Previous year: $49.1M
+29.1%
Total Assets
$3.21B
Previous year: $2.88B
+11.5%

Sprouts

Sprouts

Forward Guidance

Sprouts provided its outlook for the third quarter and full year of 2023.

Positive Outlook

  • Net sales growth: 5% to 6%
  • Comparable store sales growth: 2% to 3%
  • Adjusted EBIT: $378 million to $390 million
  • Adjusted diluted earnings per share: $2.68 to $2.76
  • Unit growth: 30 new stores

Challenges Ahead

  • Comparable store sales growth: low single digit comps
  • Adjusted diluted earnings per share: $0.59 to $0.63
  • No specific negatives were listed, only guidance.