Own Brands Key Sales Driver At Sprouts Farmers Market
Private brand products continue to have a positive impact on total sales at Sprouts Farmers Market as the grocer remains committed to expanding its selection of items sold under its own brand.
During the company’s second quarter investor conference call to discuss results, Curtis Valentine, Sprouts’ chief financial officer, said the grocer’s foraging team continues to drive its unique assortment through both Sprouts brand and emerging brands. In the quarter, Sprouts brand products contributed 22% to total sales
“Sprouts’ brand continues to expand with more than 200 new items released through the second quarter, resulting in growing comp sales above the company average,” he said. “Sales continue to grow in this space, and we have a strong process to bring the best products quickly to our shelves.”
The continued positive impact of private brand products at Sprouts helped the grocer close out a strong second quarter. For the quarter ended June 30, total sales were up 12% to $1.9 billion. Diluted earnings per share were $0.94; compared to diluted earnings per share of $0.65 in the same quarter the previous year.
Comparable store sales were up 6.7% and the company opened five new stores in the quarter to grow its store count to 419 as of June 30.
“These results are a direct outcome of consistently executing and evolving our long-term strategy over the past few years,” said Jack Sinclar, Sprouts’ CEO. “Our health enthusiast target customers continue to respond positively to our differentiated product assortment and unique shopping experience. As consumer preferences shift towards healthier living, we anticipate there will be even more health enthusiasts in the future than there are today, bolstering our confidence in the long-term potential of Sprouts.”
The grocer has also put its own brand products front-and-center in marketing campaigns. During Sprouts’ Cherry Festival, Valentine said the event that promoted cherry season features nearly 40 Sprouts brand products such as dark chocolate cherry popcorn, cherry blossom lemonade, and cherry-infused deli meals and marinades throughout the store.
Additionally, he noted the company continues to expand its store count. Sprouts currently has more than 110 approved new stores with more than 70 executed leases in the pipeline over the coming years.
