Sprouts Farmers Market Beats Expectations as Stock Price Soars
Just as predicted in March, Sprouts Farmers Market beat expectations with a huge boost in its net sales for the first quarter. Net sales increased by 26% to $720 million, compared to $573.7 million in its first quarter last year thanks to strong performance in new stores and comparable store sales growth, according to its first quarter financial report. Same store sales grew 12.8%.
“Sprouts’ focus on value is resonating with a broad and growing base of customers who now have the opportunity to purchase healthy food at an affordable price,” said Doug Sanders, President and CEO. “This has resulted in 28 consecutive quarters of positive same store sales growth and record first quarter financial performance that outperformed our targets.”
Consequently, the company is increasing its annual guidance and feels confident in achieving its growth plans. As previously reported on AndNowUKnow, Sprouts is bringing its fresh, organic produce to the Southeast with approximately 15 new stores within the next three years and three more stores planned in Las Vegas, Nevada.
Click here to read: Sprouts Farmers Market to Expand in Metro Atlanta and Las Vegas
In after hours trading, Sprouts’ share price increased $1.85 to $29.25, a 6.75% increase. This is in stark comparison to Whole Foods’ shares sinking yesterday as a result of its most recent financial report. With organic grocers continuing to step up their game, the competitive landscape is getting fiercer every day. Both Whole Foods and Sprouts are gearing up for further expansion, while Wal-Mart is moving further into the organic space with Wild Oats. I wonder if Whole Foods will eventually change its strategy in response to increased competition. For now however, it looks like Whole Foods remains confident in its current strategy.
Stay tuned to AndNowUKnow as we continue our coverage on this growing organic war.
