Sprouts Farmers Market Reports Strong Q1 Sales Gains

Sprouts Farmers Market has a strong start to the year as the specialty grocer reported gains in net sales and comparable store sales.

For the 13-week period ended March 31, the company reported net sales of $1.9 billion, an increase of 9% over the comparable period the prior year. Comparable store sales for the quarter were up 4%. Diluted earnings per share for the quarter were $1.12 compared to diluted earnings per share of $0.73 for the comparable quarter the previous year.

"We were pleased with our impressive financial results this quarter, with strength in comparable store sales, traffic, and e-commerce," said Jack Sinclair, chief executive officer of Sprouts Farmers Market. "These outcomes highlight the effectiveness of our strategy and the exceptional execution by our team members across the country. We are reinforcing our position as a leading specialty food retailer as we build new stores in line with our growth plans.”

During the first quarter, Sprouts opened seven new stores and as of March 31 operated 414 stores in 23 states.

Looking ahead to the second quarter, the company is forecasting comparable store sales growth of between 3% and 4% with adjusted diluted earnings per share of between $0.75 to $0.79.

For the full year, the company expects comparable store growth of between 2.5% and 3.5% with total net sales growth of between 7% and 8%. Additionally, 35 new stores are planned for the remainder of the year.

The grocer is expanding its presence in the northeast with new store openings planned in June for Philadelphia and Aberdeen, N.J. The Aberdeen store is scheduled to open on June 7, a new Philadelphia store at the Roosevelt Mall is set to open on June 14, while another new Philadelphia store at Quartermaster Plaza is set to open June 21.

Sprouts has also planned new store openings for Phoenix, Az., on June 14 and Ft. Worth, Tex., on June 28.