Sprouts Farmers Market Announces First Quarter 2022 Results; Jack Sinclair and Chip Molloy Comment
PHOENIX, AZ - Starting off 2022 on the right foot, Sprouts Farmers Market is showing off its successful growth strategy with the release of its First Quarter Results. The report details the 13-week period ending April 3, 2022, and is headlined by net sales of $1.6 billion.
"We are encouraged with the strong start to the year," said Jack Sinclair, Chief Executive Officer. "We delivered top-line growth, supported by both positive comps and traffic, while simultaneously maintaining our gross margin discipline. The commitment, passion, and dedication of Sprouts ~31,000 team members to one another, our customers, and communities were key to our success. We look forward to continuing to engage our communities with innovative, healthy products in convenient smaller format stores, shaping our brand as a destination specialty grocer."
Sprouts' $1.6 billion in net sales, an increase of 4 percent from the same period in 2021, was spurred by a positive increase in comparable store sales and new store openings, the report explained. Other highlights from the retailer's First Quarter Results include:
- Comparable store sales growth of 1.6 percent
- Ended the quarter with $324 million in cash and cash equivalents
- Opened six new stores and closed one, resulting in 379 stores in 23 states as of April 3, 2022
- Generated cash from operations of $153 million
Although the company's financial results for the first quarter were positive, looking ahead, Sprouts is taking a more conservative approach to setting future goals due to ongoing inflation. However, the retailer does plan to continue expanding.
"While we are pleased with our first-quarter performance, inflation is not slowing and customers are continuing to put a few less items in their baskets," said Chip Molloy, Chief Financial Officer. "Despite transaction comp continuing to be positive, given the level of uncertainty in the marketplace, we believe it is prudent to assume a more conservative approach to our outlook...We still expect to open between 15–20 new stores."
For more details from the retailer's First Quarter Results, click here.
What will the rest of 2022 hold for Sprouts? Only time and AndNowUKnow will tell, so stay tuned.