Phoenix, AZ—Sprouts Farmers Market, Inc. has reported results for the third quarter ended September 27, 2020, in a press release.
- Net sales of $1.6 billion; a 9.5% increase from the same period in 2019
- Comparable store sales growth of 4.2% and two-year comparable store sales growth of 5.7%
- Net income of $60 million and adjusted net income of $62 million; compared to net income and adjusted net income of $26 million from the same period in 2019
- Diluted earnings per share of $0.51 and adjusted diluted earnings per share of $0.52; compared to $0.22 diluted and adjusted diluted earnings per share from the same period in 2019
Net sales growth, the press release says, was driven by continued demand due to the COVID-19 pandemic. Sprouts’ strategies, including promotional activities and shrink initiatives, also contributed to growth in profits.
Selling, general, and administrative expenses for the quarter increased by $71 million, the press release notes. Increased team member bonuses and store operational expenses from COVID-19 accounted for approximately $34 million. Sprouts also saw increased ecommerce fees, due to increased ecommerce sales.
Sprouts opened six new stores during the third quarter, bringing the company to a total of 356 stores in 23 states.
“Sprouts continues to prioritize the wellbeing of our team members and customers through our safe store operations and the wholesome foods we offer,” said Jack Sinclair, CEO of Sprouts Farmers Market, in the press release. “Our strong financial performance in the third quarter was driven by our curation of healthy offerings, coupled with ongoing strategic changes. With each passing quarter, the progression of our strategy strengthens our conviction in our long-term growth and our ability to provide exceptional returns for years to come.”
Looking to the future, Sprouts expects grocery spend and ecommerce to remain at elevated levels, along with additional company expenses.
“We remain confident in executing our long-term unit growth plans, winning with our target customer, maintaining our strong balance sheet and delivering sustainable superior returns,” said Denise Paulonis, CFO of Sprouts Farmers Market, in the press release. “As we build out our 2021 plans, we are more focused than ever on maintaining the momentum we have captured in 2020, giving us confidence that our earnings before interest and taxes in 2021 will be in the range of $285 to $305 million.”