Sprouts Farmers Market shares climbed more than 16% this past week after the natural and organic grocery chain reported fiscal second-quarter earnings that exceeded Wall Street estimates. Net sales grew 5% year over year to $2.3 billion, driven by the opening of 7 new stores, bringing the total to 490 locations across 25 states, though comparable sales declined 1% due to difficult comparisons. Earnings per share inched up 1% to $1.37, topping the consensus estimate of $1.34. Management expects same-store sales to turn positive in the third quarter and projects full-year net sales growth of 5.5% to 6.5%, with earnings per share of $5.32 to $5.40, supported by 42 net new store openings. The company also sees a long-term opportunity to expand its store base to over 1,000 locations, with more than 110 executed leases and 155 approved new stores in the pipeline.
Sprouts Farmers Market LLCQ2 earnings beat and raised guidance drive stock surge
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