Sprouts Farmers Market Shares Spike 15 Percent After Q3 2015 Financial Report
PHOENIX, AZ – Sprouts’ new CEO Amin Maredia is already proving his worth after the company released its first quarterly report under his leadership.
Shortly after the third quarter results were announced, the natural and organic grocer’s shares jumped 15% to nearly $23.00 after Wall Street analysts praised Maredia’s plans to keep momentum strong and the robust earnings report.
“Sprouts’ commitment to health and value continues to resonate with customers seeking fresh, natural, and organic products at great prices, driving 34 consecutive quarters of positive comparable store sales growth,” Maredia said in a press release. “Top-line sales increased through strong promotions and operational execution which drove increased customer traffic trends.”
Sprouts’ sales increased 18% to $903.1 million compared to the same period last year, driven by a 5.8% increase in comparable store sales and solid performance in new stores. The results beat Wall Street and analyst expectations.
During the quarter, the company opened eight new stores in Colorado, Kansas, New Mexico, Tennessee, Georgia, and Texas. One more store is expected to open next quarter, bringing the total number of stores opened in 2015 to 27.
Hot on the heels of Whole Foods’ announcement that it would be implementing a $1 billion share repurchase program, Sprouts’ shared that its Board of Directors have approved a $150 million share repurchase program as well.
“We are accelerating investments across the enterprise in product innovation, business intelligence, and our team, to build on our industry leading sales momentum and support long-term growth,” Maredia explained.
Other highlights from Q3 2015 include:
- Two-year comparable store sales growth of 14.9%
- Net income of $32 million and diluted EPS of $0.21
- Adjusted net income of $32.6 million; a 19% increase from the same period in 2014
- Adjusted diluted EPS of $0.21; a 17% increase from the same period in 2014
- Adjusted EBITDA of $73.5 million; a 12% increase from the same period in 2014
- Increased guidance for 2015 and revised mid-term financial targets
“Looking ahead, we continue to focus on product innovation, private label growth, great operational execution, and 14% unit growth coast-to-coast,” Maredia concluded.
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