The grocery chain posted strong growth for the second quarter of 2024. Shares of Sprouts Farmers Market (SFM 0.87%) shot up as much as 18.7% this week, according to data from S&P Global Market Intelligence. The health grocery chain reported earnings for the second quarter of 2024 that beat Wall Street's expectations. Up over 100% this year, the stock is crushing the broad market indices, and it's up close to 500% in the last five years. As of the market close on Thursday, Aug. 1, the stock is up 16.2% since ...

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Have you been paying attention to shares of Sprouts Farmers (SFM) ? Shares have been on the move with the stock up 15.6% over the past month. The stock hit a new 52-week high of $103.8 in the previous session. Sprouts Farmers has gained 99.3% since the start of the year compared to the 11.3% move for the Zacks RetailWholesale sector and the 29% return for the Zacks Food - Natural Foods Products industry. The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings cons ...

Shares of Sprouts Farmers Market soared 13% to an all-time high Tuesday after the company reported quarterly results that beat Wall Street expectations and raised its full-year guidance. The supermarket chain posted same-store sales growth of 6.7% and opened five new stores in the latest quarter. Sprouts now expects 2024 net sales growth of 9% to 10%, up from a previous projection of 7% to 8%. Shares of Sprouts Farmers Market (SFM) soared to an all-time high Tuesday after the supermarket chain reported quar ...

SDI Productions Sprouts Farmers Market, Inc. (NASDAQ:SFM), the grocery chain with a focus on health food, reported Q2 results that beat Wall Street estimates by an extremely wide margin for a grocery chain. With an increased 2024 outlook and the great financials, the market has taken the results incredibly well, with the stock up 18% in premarket trading at the time of writing. I previously wrote an article on the 9th of June on SFM, titled "Sprout Farmers Market's Stock Momentum Has Space Left". In the art ...

Sprouts' business prides itself on fresh produce and a focus on wellness, and the company continues to impress Wall Street. The grocer beat estimates on both the top and bottom lines. Comparable sales in the quarter rose 6.7%, driving revenue up 12% to $1.89 billion, which topped the consensus of $1.84 billion. Gross margin improved from 37% to 37.9%, which helped drive earnings per share up from $0.65 to $0.94, easily topping expectations of $0.78. CEO Jack Sinclair said: "Customers are responding to our h ...

Shares of Sprouts Farmers Market, Inc. (SFM) advanced 15.2% during the after-market trading session on Jul 29, 2024. The stock gained following the company's better-than-expected second-quarter performance and an upbeat outlook for 2024. Shares of this Zacks Rank #3 (Hold) company have surged 68.1% in the past six months compared with the industry's growth of 14.7%. The renowned grocery retailer delivered quarterly earnings of 94 cents a share, which beat the Zacks Consensus Estimate of 77 cents. The bottom ...

Financial Data and Key Metrics - Total sales grew by 12% YoY to $1.9 billion in Q2 2024, driven by a 6.7% increase in comparable store sales and new store openings [3][25] - Diluted earnings per share (EPS) increased by 32% YoY to $0.94, compared to adjusted diluted EPS from the prior year [7] - Gross margin improved by 80 basis points YoY to 37.9%, driven by better inventory management, promotional optimization, and supply chain leverage [26] - E-commerce sales grew by 30% YoY, representing 14% of total sales for the quarter [5] - Net income for the quarter was $95 million, and operating cash flow year-to-date was $311 million, enabling $89 million in self-funded capital expenditures [7] Business Line Performance - Sprouts brand contributed 22% to total sales for the quarter, with over 200 new items released, driving comp sales above the company average [10][11] - The company saw strong performance across all categories, with improvements in inventory management, product assortment, and store operations [5][33] - E-commerce growth remained steady, supported by investments in omnichannel capabilities and customer engagement [5][34] Market Performance - The company experienced strong sales performance across all geographies, with early and strong seasonal produce sales contributing to the growth [25] - New store openings in 2024 have been successful, with strong performance in both established and emerging markets [13][14] - The company plans to open approximately 35 new stores in 2024, with the majority of openings in Q4 [8][14] Strategy and Industry Competition - The company is focused on becoming a go-to destination for health and wellness products, with a unique product assortment tailored to target customers [10][23] - Investments in category management and supply chain improvements have enhanced inventory management and reduced shrink [33] - The company is testing a loyalty program in select markets to increase customer engagement and share of wallet [34][62] Management Commentary on Operating Environment and Future Outlook - Management remains optimistic about the company's momentum and long-term growth potential, driven by a focus on health-conscious consumers [23][31] - For the full year 2024, the company expects total sales growth of 9% to 10% and comp sales growth of 4% to 5% [8] - Adjusted EPS for the full year is expected to be between $3.29 and $3.37, with continued pressure on SG&A due to wage increases and new store openings [8][9] Other Important Information - The company paid down $125 million of its outstanding revolver and returned $104 million to shareholders through share repurchases [28] - SG&A for the quarter totaled $556 million, an increase of $63 million YoY, primarily due to strategic investments and new store openings [6] - The company has $585 million remaining under its $600 million share repurchase authorization [28] Q&A Session Summary Question: New store growth and timing - The majority of new store openings in 2024 will occur in Q4, with some delays due to higher interest rates and development challenges [43][44] - The company has 110 approved sites and over 70 signed leases, with a healthy pipeline for future growth [44][110] Question: Gross margin sustainability - Gross margin expansion is expected to continue in the second half of 2024, driven by inventory management and promotional effectiveness [29][78] - The company is focused on maintaining its differentiated assortment and controlling margins, rather than investing in pricing [46][67] Question: E-commerce profitability - E-commerce is slightly dilutive to profitability due to fee structures, but larger baskets contribute to stronger net dollar profitability [89] - The company is indifferent to how customers shop, whether in-store or online, and expects e-commerce penetration to increase slightly over time [152][163] Question: Loyalty program expansion - The company is in the early stages of testing its loyalty program and is gathering customer data to refine the program before expanding to new markets [62][152] Question: Cannibalization and new store productivity - Cannibalization is expected to increase slightly as the company expands, particularly in established markets, but new stores are performing well [170] - New store productivity is strong, with comps in newer vintages outperforming older stores [155][158]

For the quarter ended June 2024, Sprouts Farmers (SFM) reported revenue of $1.89 billion, up 11.9% over the same period last year. EPS came in at $0.94, compared to $0.71 in the year-ago quarter. The reported revenue represents a surprise of +3.61% over the Zacks Consensus Estimate of $1.83 billion. With the consensus EPS estimate being $0.77, the EPS surprise was +22.08%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...