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Sprouts Farmers Market Sales Surge 11.5%

Core Insights - Sprouts Farmers Market reported strong fourth-quarter earnings, exceeding expectations due to robust sales growth and strategic expansion efforts [1][2] Financial Performance - The company achieved an EPS of $0.79, surpassing estimates of $0.73, and revenue of $2.0 billion, exceeding the expected $1.96 billion [2][3] - Year-over-year, EPS increased by 61.2% from $0.49 in Q4 2023, while revenue grew by 18.0% from $1.7 billion [3][6] - Comparable store sales growth was reported at 11.5%, indicating strong performance in existing locations [3][6] Strategic Initiatives - Sprouts opened 12 new stores during the fourth quarter, contributing to its growth strategy [6][7] - The company launched approximately 7,100 new products, enhancing its product diversity and revenue streams [7] - The Sprouts brand accounted for over 23% of total sales, highlighting its significance in the company's revenue generation [7] Operational Highlights - Net income for the quarter was $79.6 million, up from $50 million in Q4 2023, reflecting improved profitability [7] - Gross profit margins improved from 36.5% to 38.1%, indicating better cost management practices [7] Future Outlook - For Q1 2025, Sprouts projects a 10% to 11% increase in comparable store sales and an EPS between $1.51 to $1.55 [8] - Full-year expectations include a net sales rise of 10.5% to 12.5% and robust EBITDA forecasts between $590 million to $610 million [8]