Sprouts Farmers Market CEO Doug Sanders Talks Strong FY 2014 and Future Expansion
PHOENIX, AZ – Sprouts Farmers Market has recorded strong Q4 and FY 2014 results in its latest financial report. Doug Sanders, President and CEO, discussed these newly released financials and the company's rapid expansion plans.
“We are pleased to report another quarter of strong top-line sales growth for Sprouts and solid financial results for the fourth quarter of 2014,” Sanders said.
For the quarter, the retailer saw net sales of $734.6 million, a 21% increase over the same period in 2013, as well as comparable store sales growth of 8.5% and two-year comparable sales growth of 22.3%.
Other highlights from the quarter include:
- Net income of $17.7 million and diluted earnings per share of $0.11
- Adjusted diluted earnings per share of $0.12, a 71% increase from the same period in 2013
- Adjusted EBITDA of $53.3 million, a 41% increase from the same period in 2013.
Sanders elaborated in the company’s conference call, saying, “We were very pleased with 8.5% comp sales growth we achieved for the quarter, especially in the face of a 13.8% comp for the same period in 2013 and a 2014 fourth quarter produce season that was tight in availability and quality driven by those weather conditions.”
As for the tight produce season, he clarified that the West Coast port congestion affected the retailer’s key categories – grapes, blueberries and asparagus, as well as California weather affecting both leaf and lettuce categories.
As for FY 2014, Sprouts saw net sales of $2.97 billion, a 22% increase compared to reported net sales in 2013. For the year, the company also saw store sales growth of 9.9% and two-year combined comparable store sales growth of 20.6%.
Other FY highlights include:
- Net income increased to $107.7 million, diluted earnings per share of $0.70
- Adjusted net income increased $111.2 million, a 65% increase from 2013
- Adjusted diluted earnings per share of $0.72, a 50% increase from 2013
- Adjusted EBITDA of $265.4 million, a 36% increase from 2013
In 2014, Sprouts opened 24 new stores, which included new market entries in Kansas and Georgia. Sanders says that the new stores are performing well with new store productivity for the year ending just shy of 100%, which is above the company’s historic average of 75%.
According to Sanders, the new stores last year are just the beginning. “Our proven success in new markets is bringing new opportunities as we expand into three new states this year. Our 2015 new store program will include the addition of Alabama, Tennessee and Missouri while continuing to focus 70% of our overall growth in our existing markets,” he said.
Year-to-date for 2015, the company has already opened 7 new stores including new stores in Missouri and Alabama. The company’s real estate plan included 62 approved sites and 45 signed leases for the coming years.
Another 2015 change for Sprouts involves Sanders directly. He has been named to the company’s Board of Directors.
“I am honored to serve Sprouts in my new capacity as a member of its board of directors,” said Sanders. “I look forward to working together with the board to continue delivering our mission of ‘Healthy Living for Less’ to our customers from coast to coast.”
Sprouts’ rapid expansion plans coupled with strong financial reports like these make this retailer one to watch in 2015. Stay tuned to AndNowUKnow for the latest updates on the ever-evolving retail landscape.