Sprouts Farmers Market(SFM) - 2025 Q2 - Quarterly Results

Cash and Financial Position - Ended the quarter with $177 million in cash and cash equivalents and zero balance on its $700 million revolving credit facility after a $125 million voluntary pay down [1] - Generated cash from operations of $311 million and invested $89 million in capital expenditures, net of landlord reimbursement, year-to-date thru June 30, 2024 [1] - Total assets as of June 30, 2024, were $3.410519 billion, up from $3.327428 billion at the end of 2023 [19] - Current assets decreased to $568.051 million from $603.772 million at the end of 2023 [19] - Long-term operating lease liabilities increased to $1.482797 billion from $1.399676 billion at the end of 2023 [19] - Total liabilities decreased to $2.141244 billion from $2.178881 billion at the end of 2023 [19] Share Buyback and Capital Allocation - Authorized a new $600 million share buyback program and repurchased 640 thousand shares of common stock for a total investment of $44 million, excluding excise tax [1] Earnings and Profitability - Adjusted diluted earnings per share for Q3 2024 is projected to be $0.71 to $0.75 [1] - Diluted earnings per share for Q2 2024 was $0.94, compared to $0.65 in the same period in 2023 [15] - Adjusted diluted earnings per share of $0.94 for Q2 2024, unchanged from the previous year [30] - Gross profit for Q2 2024 was $718.365 million, with a gross margin of 37.9% [30] - Adjusted EBITDA for Q2 2024 was $160.551 million, up from $132.952 million in Q2 2023 [30] - Net income for Q2 2024 was $95.289 million, compared to $67.334 million in Q2 2023 [30] Sales Performance - Net sales growth for Q3 2024 is expected to be 9% to 10% [1] - Net sales for Q2 2024 totaled $1.9 billion, a 12% increase from the same period in 2023 [15] - Comparable store sales growth for full-year 2024 is projected to be 4% to 5% [7] - Comparable store sales growth of 6.7% in Q2 2024 [21] Store Operations and Expansion - Opened 5 new stores, resulting in 419 stores in 23 states as of June 30, 2024 [15] - The company operates more than 415 stores in 23 states nationwide, employing approximately 32,000 team members [24] Adjusted EBIT and Forecasts - Adjusted EBIT for Q3 2024 is forecasted to be $445 million to $455 million [1]