Private Brands, Comp Store Growth Boost Sprouts Q1 Results

Driven by an increase in comparable store sales coupled with continued market share growth of its assortment of private brand products, Sprouts Farmers Market saw an increase in sales for the first quarter.

In the 13-week period ended April 2, total company sales were $1.7 billion, a 6% increase over the comparable period the prior year. Same store sales were up 3.1%. Adjusted diluted earnings per share were $0.98, an increase of 24% over the first quarter of the prior fiscal year.

“We are pleased with our first quarter and believe our long-term growth strategy is gaining traction and driving positive performance," said Jack Sinclair, chief executive officer of Sprouts Farmers Market.  

During the quarter, Sprouts opened eight new stores, closed one store, and acquired two previously licensed stores, resulting in 395 stores in 23 states as of April 2.

During a conference call to discuss results, Sprouts officials reported continued growth of its Sprouts Brand private label line, which now accounts for 20% of total sales. 

“We are building a strong affinity for our Sprouts Brand of products as many items are only available at key seasonal times,” said Sinclair. “Our customers recognize that the Sprouts Brand provides quality offerings that taste great and are good for you.”

Looking ahead, the company for the second quarter is forecasting net sales growth of between 5% and 6%, with comparable store sales expected to rise between 2% and 3%. Sprouts anticipates opening 30 new stores, closing 11 locations and acquiring two previously licensed stores.