Sprouts Reports Q4, 2020 Results, 2021 Outlook

Highlights include record earnings and cash flow from a 15% increase in sales while absorbing costs associated with a 340% increase in e-commerce sales, record bonuses paid to frontline workers, and the opening of 22 new stores.

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Phoenix, AZ—Sprouts Farmers Market reported results for the 14-week fourth quarter and 53-week year ended January 3, 2021, and Jack Sinclair, CEO of Sprouts Farmers Market, highlighted the “encouraging” results:  “In 2020, we generated record earnings and cash flow from a 15% increase in sales while absorbing costs associated with a 340% increase in ecommerce sales, paying record bonuses to our frontline team members, and opening 22 new stores,” Sinclair said in a press release. “Executing our strategic initiatives at a more rapid pace than we originally planned is fueling these encouraging results and establishing a solid base from which we can invest and grow. I want to thank not only our dedicated team members at Sprouts, but also our supply chain partners, vendors, farmers and growers, who worked collectively to make healthy food accessible to our customers in this extraordinary year.”

Highlights for the chain, which now operates a total of 362 stores in 23 states:

4th Quarter Highlights:

  • Net sales of $1.6 billion, up 17% from the same period in 2019
  • Comparable store sales growth of 3.7% and two-year comparable store sales growth of 5.2%, both on a 13-week basis
  • Net income of $68 million and adjusted net income(1) of $70 million; compared to net income and adjusted net income of $32 million from the same period in 2019; adjusted net income increased 119% from the same period in 2019

Fiscal Year 2020 Highlights:

  • Net sales of $6.5 billion, up 15% from 2019
  • Comparable store sales growth of 6.9% and two-year comparable store sales growth of 8.0%, both on a 52-week basis
  • Net income of $287 million and adjusted net income(1) of $294 million; compared to net income and adjusted net income of $150 million from 2019; adjusted net income increased 96% from 2019
  • E-commerce sales were up 340% over 2019.

Full Year 2021 Outlook

The release explains that as the impact that COVID-19 will have on the U.S. economy and Sprouts’ fiscal 2021 results remains uncertain, noting, Sprouts is planning for fiscal 2021 based on a range of potential outcomes. Expected outlook for 2021: net sales growth is expected to be flat or slightly up, with unit growth of approximately 20 new stores. More details can be found here.

Looking ahead, Sprouts presented its multi-year business strategy, outlining how efforts made in 2020 will start to “come to life” for consumers in 2021, including:

  • Product innovation to refresh the store and online assortment;
  • Smaller store format debut, plus the rollout of innovation centers in some existing stores;
  • New distribution centers that will be operational by the end of May, and fresher product to customer in over 100 stores
  • Digital-first marketing platform
Related: 2021 43rd Annual Retailer Survey
Retail Insights® 2021 Retail Universe for U.S. Premium Natural, Organic Food, Supplement & Personal Care Sales.