Phoenix, AZ—Sprouts Farmers Market, Inc., reported results for its first quarter ended March 31, 2019, in a press release. Net sales saw a 10% increase from Q1 2018.
Other highlights include:
- Comparable store sales growth of 1.4%
- Net income of $56 million, compared to $67 million from Q1 2018
- Raised the low-end of 2019 EPS guidance
- Gross profit margin of 34.3%
- 8 new stores opened
The press release says that the lower net income was driven by cycling a lower effective tax rate and the impact of a new lease accounting standard. That said, according to Zacks Equity Research, Sprouts’ quarterly earnings of $0.46 per share beat the Zacks Consensus Estimate of $0.40 per share.
Full-year 2019 guidance remains unchanged.
Brad Lukow, interim co-CEO and CFO of Sprouts, said in the release: “Sprouts’ efficient model continues to produce strong returns on invested capital resulting in healthy cash generation. This sound financial footing, coupled with strong new store productivity, supports continued expansion of our trusted brand across existing markets and three additional states this year.”
Jim Nielsen, interim co-CEO, president, and COO of Sprouts, said in the release: “Our focus on fresh and healthy products at great prices has positioned us well to meet the needs of today’s customers, and our ongoing investments in technology, digital channels, and innovation are paving the way to success for years to come.”
Read the full release here.