Sprouts Farmers Market’s focus is offering what is good for you, and in turn the past few quarters have been good to the retailer.
Sprouts’ hot streak continued in the second quarter of 2024 as the Phoenix-based retailer posted $1.9 billion in net sales, a 12% increase year over year. Comparable store sales showed a growth of 6.7%.
Gross profit for Sprouts came in at over $718 million, a significant increase compared to Q2 2023 when it was over $625 million.
Adjusted EBITDA was over $160 million. Last year it was over $132 million.
“Sprouts saw outstanding second quarter results,” said Jack Sinclair, CEO of Sprouts Farmers Market. “Customers are responding to our healthy product assortment and our unique store experience. We are excited about the opportunities ahead.”
Over the first two quarters of the fiscal year, Sprouts net sales are just over $3.7 billion (over $3.42 billion in Q2 2023) and its gross profit stands at just over $2.33 billion (over 2.14 billion in Q2 2023).
For the third quarter, Sprouts is projecting a comparable store sales growth to fall between a year-over-year increase of 3.5% to 4.5%. Net sales growth for all of 2024 is set for a 9% to 10% increase and comparable store sales growth is forecasted to be between a 4% to 5% growth.
Sprouts opened up five new stores during the second quarter, and the retailer expects to have 35 new locations up and running by the end of the year.
In May, Sprouts Farmers Market’s board of directors authorized a new $600 million stock buyback program, which replaces a share repurchase authorization that had almost $120 million remaining.
The buyback reflected the company’s strong cash flow and the board of director’s confidence in the company’s strategy and potential.
In other second quarter news, Sprouts announced that select stores in California would offer a Klatch Coffee café. The grand opening of the first one was Memorial Day weekend in Fontana.
As of July 8, Sprouts Farmers Market had 417 locations in the U.S. according to ScrapeHero.