Sprouts Farmers Market used its fourth quarter earnings call on Thursday to provide an update on its first robust loyalty program, and also talked about continued store growth and financial success.
Net sales for the fourth quarter totaled $1.7 billion, an 8% year over year increase, while comparable store sales went up 3.3%.
Sales of the Sprouts private label brand also grew 13% over the final quarter of 2023 as the retailer added 400 new products.
Ecommerce expanded 12.2% year over year thanks in part to the addition of DoorDash delivery, and six stores opened.
Sprouts Farmers Market also increased supply chain capacity over the final 13 weeks of 2023 by opening a new California distribution center and expanding a distribution center in Texas.
“Our fourth quarter performance demonstrates our continued strength as a leading specialty grocer,” said Jack Sinclair, chief executive officer of Sprouts Farmers Market. “Our 2023 results exceeded our original expectations, with solid comparable sales each quarter, positive traffic, accelerating unit growth, and increasing customer engagement. I am confident our strategy and our passionate, dedicated team will continue to create shareholder value.”
Sinclair also said the retailer’s first-ever robust customer loyalty program should be up and running by the midpoint of 2024.
For fiscal year 2023, net sales soared to $6.8 billion for a 7% increase from 2022 and comparable sales growth was 3.4%.
Sprouts Farmers Market opened a total of 30 new stores and its network currently stands at 407 locations in 23 states.
Growth will continue for the retailer over the next year. Comparable store sales growth is expected to be between 2.5% and 3.5% during the first quarter, and for the year Sprouts is looking at net sales growth between 5.5% and 7.5% and comparable store sales growth in the range of 1.5% and 3.5%.
About 35 new stores will go live during the year, with most opening during the second half.