Phoenix-based Sprouts Farmers Market teased additions to its own brand program during its Q3 financial call that saw sales dip overall, but private brand innovation is on the way.
The chain recently added 16 new fall-centric own brand items to its portfolio, including an oatmilk creamer, and during the call reported another similar innovation will be joining the portfolio for the holidays.
Comparable store sales growth dropped 5.4%, and two-year comparable store sales growth dropped by 2.1%. Sprouts’ net income at the end of Q3 was $64 million, compared to net income of $60 million and adjusted net income of $62 million in the same period in 2020, and $26 million from the same period in 2019.
Selling, general and administrative expenses ("SG&A") for the quarter decreased $52 million to $423 million, or 28% of sales, reflecting lower COVID-19 pandemic response costs, including incentive compensation in the prior year, along with lower marketing and e-commerce expenses. Compared to the same period in 2019, SG&A increased 4.7%.
During the third quarter of 2021, Sprouts opened three new stores and had one relocation with its new store format, resulting in 366 stores in 23 states as of Oct. 3. Due to continued difficulties in equipment from third parties because of supply chain delays complicated by the COVID-19 pandemic, Sprouts said that six planned new store openings in the fourth quarter of 2021 will be delayed until 2022.