Sprouts Farmers Market(US:SFM)2024-07-29 20:11Financial Performance - The Company's net sales for the twenty-six weeks ended June 30, 2024, were $3,777.3 million, an increase from $3,425.6 million for the same period in 2023, representing a growth of 10.3%[98]. - Net income for the twenty-six weeks ended June 30, 2024, was $209.4 million, up from $143.5 million for the same period in 2023, indicating a year-over-year increase of 46.0%[119]. - Basic net income per share for the twenty-six weeks ended June 30, 2024, was $2.08, compared to $1.39 for the same period in 2023, reflecting a growth of 49.6%[119]. - Net income for the thirteen weeks ended June 30, 2024, was $95.3 million, a 42% increase from $67.3 million in the prior year[191]. - Net sales for the thirteen weeks ended June 30, 2024, reached $1,893,519, up from $1,692,247 in the prior year, indicating a growth of approximately 11.9%[164]. - Gross profit for the thirteen weeks ended June 30, 2024, was $718.4 million, an increase of $92.4 million or 15%, with a gross margin of 37.9%[183]. - Gross profit totaled $1.4 billion, an increase of $164.6 million or 13%, with a gross margin of 38.1% compared to 37.3% in the previous year[224]. Stockholder Equity and Liabilities - For the thirteen weeks ended June 30, 2024, total stockholders' equity increased to $1,269,275 thousand from $1,148,547 thousand, representing a growth of approximately 10.5% year-over-year[36]. - As of June 30, 2024, total liabilities and stockholders' equity amounted to $3,410,519 thousand, compared to $3,327,428 thousand as of July 2, 2023, indicating an increase of about 2.5%[36]. - The company had no outstanding loans under the Credit Agreement as of June 30, 2024, after making principal payments of $125,000 thousand during the period[86]. - The company’s total long-term debt and finance lease liabilities were reported at $8,057 thousand as of June 30, 2024, down from $133,685 thousand as of December 31, 2023[80]. - The company’s long-term debt remained at $125 million as of June 30, 2024[141]. - The company had no long-term debt outstanding as of June 30, 2024, compared to $125.0 million as of December 31, 2023[214]. Share Repurchase and Stock Awards - The Company authorized a new $600 million share repurchase program, replacing the previous program with $119.3 million remaining available[91]. - The total cost of common shares acquired in the twenty-six weeks ended June 30, 2024, was $105.2 million, with an average price per share of $65.86[116]. - The company repurchased an additional 0.1 million shares of common stock for $7,400 thousand subsequent to June 30, 2024[65]. - The company had 1,080,489 stock awards outstanding as of June 30, 2024, with 5,584,937 shares remaining available for issuance under the 2022 Incentive Plan[100]. - The company granted share-based compensation awards totaling $6,789 during the thirteen weeks ended June 30, 2024, compared to $5,609 in the prior year[160]. Tax and Interest Expenses - The effective tax rate decreased to 23.8% for the twenty-six weeks ended June 30, 2024, compared to 24.0% for the same period in 2023, primarily due to increased excess tax benefits from share-based payment awards[89]. - The effective tax rate increased to 25.2% for the thirteen weeks ended June 30, 2024, compared to 24.7% for the same period in 2023[144]. - Total interest expense, net, decreased by 84% to $679,000 for the twenty-six weeks ended June 30, 2024, compared to $4.4 million in the prior year[201]. - Interest expense, net decreased to $0.7 million for the twenty-six weeks ended June 30, 2024, down from $4.4 million in the prior year due to lower average debt outstanding[229]. Store Operations - As of June 30, 2024, the company operated 419 stores across 23 states[139]. - The company opened 5 new stores during the thirteen weeks ended June 30, 2024, bringing the total number of stores to 419, up from 391 a year ago[164]. - The company closed 11 underperforming stores in 2023, resulting in a charge of $27.8 million related to impairment of leasehold improvements[131]. - Selling, general and administrative expenses increased by $58.4 million, or 12%, compared to the same period last year, primarily due to the increase in new stores[168]. Cash Flow - Cash flows from operating activities for the twenty-six weeks ended June 30, 2024, were $311,295, compared to $294,781 for the same period last year[150]. Performance Metrics - Comparable store sales growth was 6.7% for the thirteen weeks ended June 30, 2024, compared to 3.2% for the same period last year, reflecting improved performance[164]. - Comparable store sales growth was 5.4% for the twenty-six weeks ended June 30, 2024, compared to 3.2% in the prior year[223]. - Return on Invested Capital (ROIC) increased to 13.7% for the rolling four quarters ended June 30, 2024, compared to 13.0% for the previous year[208].