Sprouts keeps resonating with shoppers

Sprouts Farmers Market reported an increase in same store sales in the fourth quarter as the grocer attracted more shoppers with its private brands and value-priced natural foods assortment.

For its fourth quarter ended Dec. 30, Phoenix, Ariz.-based Sprouts posted net sales of $1.3 billion, an 11 percent increase from the same period in 2017. Same store sales grew 2.3 percent and two-year comparable store sales grew 6.9 percent.

“Sprouts delivered 12% net sales growth for the year in a competitive and evolving industry, demonstrating the strength of our differentiated model and brand,” said Brad Lukow, interim co-chief executive officer and chief financial officer of Sprouts Farmers Market.

Nearly 50% of shopper baskets at Sprouts have at least one own brand product. The private brand program accounts for more than 12% of total sales, according to the company.

For the quarter, adjusted net income at Sprouts was $24 million, compared to $21 million from the same period in 2017. Diluted earnings per share were 10 cents, compared to 29 cents from the same period in 2017.

For the full year, Sprouts had net sales of $5.2 billion, a 12 percent increase from 2017. Same store sales growth was 2.1 percent and two-year comparable store sales growth was 5 percent. Net income for the full year was $159 million, compared to $158 million in 2017.

“Our focus on health, value, selection and service continues to produce solid financial returns, supporting our ongoing expansion that allows Sprouts to reach new customers and markets, positioning us well for long-term growth.” said Jim Nielsen, interim co-chief executive officer, president and chief operating officer of Sprouts Farmers Market.  “We remain focused on building upon our strategic initiatives in people, systems and product innovation to drive continued enhancements to our experience, reinforcing Sprouts as a trusted brand for health and value.”

Headquartered in Phoenix, Sprouts employs more than 30,000 team members and operates more than 300 stores in 19 states.