Chandler, Arizona-based Sprouts Farmers Market Inc. reported results for the 13-week third quarter ended Sept. 29.
Third quarter highlights include:
- Net sales of $1.4 billion; an 8 percent increase from the same period in 2018.
- Comparable store sales growth of 1.5 percent and two-year comparable store sales growth of 3 percent.
- Net income of $26 million, compared to $38 million from the same period in 2018.
- Increased EPS guidance for 2019.
“Reflecting on my first 100 days at Sprouts, I am even more privileged to be part of this unique brand and excited about the opportunities that lie ahead,” said Jack Sinclair, CEO of Sprouts Farmers Market. “While we are in the early stages of assessing our strategy for long-term growth and value creation, I am encouraged by the commitment from the team and their dedication to improve the performance of the business.”
Third quarter 2019 financial results
Net sales for the third quarter of 2019 were $1.4 billion, an 8 percent increase compared to the same period in 2018. Net sales growth was driven by strong performance in new stores opened and a 1.5 percent increase in comparable store sales.
Gross profit for the quarter increased 8 percent to $477 million, resulting in a gross profit margin of 33.1 percent, a decrease of 25 basis points compared to the same period in 2018. This was primarily driven by increased distribution and transportation costs, along with sharper promotions early in the quarter, which was partially offset by our efforts to better balance the promotional mix in the back half.
Net income for the quarter was $26 million compared to $38 million for the same period in 2018.
Fiscal year-to-date financial results
For the 39-week period ended Sept. 29, net sales were $4.3 billion, an 8 percent increase compared to the same period in 2018. Growth was driven by strong performance in new stores opened and a 1 percent increase in comparable store sales. Net income was $118 million compared to $146 million for the same period in 2018.
Growth and development
During the third quarter of 2019, Sprouts opened nine new stores resulting in a total of 335 stores in 21 states.
