PHOENIX, AZ - With news of Sprouts Farmers Market’s recent executive shakeup, the company also reported its latest financial results for the second quarter of 2015.

Sprouts saw a 21 percent increase in net sales from the same period last year, topping $902 million for the quarter. This was driven primarily by strong performance of new stores, as well as comparable store sales growth of 5.1 percent.

Over the course of the second quarter, Sprouts opened eight new stores, one each in Alabama, Arizona, California, Colorado, Georgia, Oklahoma, Missouri, and its first store in Tennessee. To date, four additional stores have opened in the third quarter, for a grand total of 22 new stores opened in 2015. The company said in its report that it is still on track to open 27 stores this year.  

Doug Sanders, the former President & CEO, and now, Executive Chairman of the Board, discussed these recent results in a conference call with investors. He explained that the company continues to make solid progress into 2015 with a strategic focus on broadening its appeal to everyday grocery shoppers across age groups and demographics.

As for Sprouts’ plans for expansion, Sanders said during the conference call that the company will continue to focus on growth in existing markets to offset the investment in its new market expansion strategy.

“We see this as an effective long term strategy for several reasons,” he said. “One, new stores in existing markets open with higher productivity and achieve expected returns much more quickly than new stores and new markets. Two, we’re able to gain leverage in existing distribution, advertising, and supervision cost which increases the overall profitability of the market. And three, we’re able to expand both our market share and brand recognition with a greater number of stores in the trade area.”

Sanders also discussed expanded daily offerings into four additional stores this quarter, including features such as a new salad bar, prepared proteins, healthy side dishes, and an improved assortment of pantry meals and side dishes. Sanders said that Sprouts plans to roll out these offerings into more stores in 2016 and beyond.  

“I continue to be very optimistic about the future of our company and the tremendous growth still in front of us,” he said.

Other highlights from Sprouts’ Q2 2015 include:

• Net income of $31.3 million and diluted EPS of $0.20
• Adjusted net income of $35.0 million; a 16% increase from the same period in 2014

• Adjusted diluted EPS of $0.22; a 10% increase from the same period in 2014
• Adjusted EBITDA of $77.6 million; a 12% increase from the same period in 2014
• New $450 million revolving credit facility; $160 million outstanding after $100 million voluntary pay down

To see Sprouts Q1 2015 financial report, click here.

Stay tuned for more on Sprouts Farmers Market as we follow the company’s financial performance into Q3 2015 and beyond.

Sprouts Farmers Market