Sprouts Farmers Markets Ends 2022 With Solid Q4

Continued strong demand for healthy products was a key driver of fourth quarter sales at Sprouts Farmers Market, which reported mid-single digit growth in the 13-week period ended Jan. 1.

Total quarterly sales were $1.6 billion, an increase of 6% over the comparable quarter the previous year. Net income was $45.1 million, up from net income of $36.2 million in the fourth quarter of 2021 with diluted earnings per share up $0.10 year-over-year to $0.42. Same store sales were up 2.9%. During the quarter, the company opened seven new stores.

"We are pleased with our strong fourth-quarter results, closing out the year with double-digit earnings per share growth," said Jack Sinclair, chief executive officer of Sprouts Farmers Market. "These solid trends reflect the resilience of healthy, natural and organic food, and give us confidence in our future business.”

For the year, net sales were up 5% to $6.4 billion. Net income was $261.2 million, up from net income of $244.2 million in the prior year. Diluted earnings per share were up $0.29 per share to $2.39. The company during 2022 opened 16 new stores, bringing its total store count to 386.

For the year ahead, Sprouts is forecasting net sales growth of between 4% and 6% with low single digit comparable store sales growth. The company also anticipates opening 30 new stores and closing 11 locations. 

"While we recognize the near-term economic environment is difficult to predict, the stability of our recent sales is encouraging," said Chip Molloy, chief financial officer of Sprouts Farmers Market. "We are optimistic about our ongoing cash generation and our ability to invest in our business for growth.