Latest news with #JackSinclair
Business Wire
27-05-2025
- Business
- Business Wire
Sprouts Farmers Market to Present at the Deutsche Bank Global Consumer Conference 2025
PHOENIX--(BUSINESS WIRE)--Sprouts Farmers Market, Inc. (Nasdaq: SFM), one of the largest and fastest-growing specialty retailers of fresh, natural and organic food in the United States, today announced the company's participation in the Deutsche Bank Global Consumer Conference in Paris. Jack Sinclair, chief executive officer, and Curtis Valentine, chief financial officer, are scheduled to conduct a fireside chat discussion at 11:15 a.m. CEST / 5:15 a.m. Eastern Daylight Time on Wednesday June 4, 2025. A live webcast of the fireside chat can be accessed through this link. The link will also be available on the Investor Relations section of Sprouts' website: About Sprouts Farmers Market True to its farm-stand heritage, Sprouts offers a unique grocery experience featuring an open layout with fresh produce at the heart of the store. Sprouts inspires wellness naturally with a carefully curated assortment of better-for-you products paired with purpose-driven people. The healthy grocer continues to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. Headquartered in Phoenix, and one of the largest and fastest growing specialty retailers of fresh, natural and organic food in the United States, Sprouts employs approximately 35,000 team members and operates more than 440 stores in 24 states nationwide. To learn more about Sprouts, and the good it brings communities, visit Sprouts Farmers Market | About Us.
Yahoo
15-05-2025
- Business
- Yahoo
SFM Q1 Earnings Call: Sprouts Farmers Market Reports Outperformance and Expands Growth Initiatives
Grocery store chain Sprouts Farmers Market (NASDAQ:SFM) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 18.7% year on year to $2.24 billion. Its non-GAAP profit of $1.81 per share was 16.5% above analysts' consensus estimates. Is now the time to buy SFM? Find out in our full research report (it's free). Revenue: $2.24 billion vs analyst estimates of $2.21 billion (18.7% year-on-year growth, 1.4% beat) Adjusted EPS: $1.81 vs analyst estimates of $1.55 (16.5% beat) Adjusted EBITDA: $263.2 million vs analyst estimates of $242.5 million (11.8% margin, 8.5% beat) Management raised its full-year Adjusted EPS guidance to $5.02 at the midpoint, a 9.1% increase Operating Margin: 10.1%, up from 7.9% in the same quarter last year Free Cash Flow Margin: 10.7%, up from 8.9% in the same quarter last year Locations: 443 at quarter end, up from 414 in the same quarter last year Same-Store Sales rose 11.7% year on year (4% in the same quarter last year) Market Capitalization: $15.51 billion Sprouts Farmers Market opened 2025 with financial results that surpassed Wall Street's expectations, driven by notable same-store sales growth, increasing customer traffic, and effective inventory and supply chain management. Management credited these results to high demand for health-focused products, a strong performance by new store openings, and broad-based category strength. CEO Jack Sinclair highlighted the company's focus on serving health-conscious consumers, stating, 'Our strategic commitment to our health enthusiast target customer is clearly resonating, driving both traffic and sales.' Looking ahead, Sprouts' leadership raised its full-year adjusted EPS forecast. The team pointed to continued investments in loyalty initiatives, supply chain infrastructure, and the expansion of self-distribution, particularly in fresh meat and seafood. President Nick Konat expressed optimism about the upcoming national launch of the loyalty program, noting, 'We're really happy with what we're seeing in the 35 stores we're currently in right plan moving forward is to begin the national launch in the second half of the year.' Sprouts' management attributed Q1's performance to a combination of health and wellness trends, operational improvements, and expansion initiatives. Category strength and new store productivity were emphasized as central to the company's outperformance relative to market expectations, while supply chain changes and customer engagement efforts also played meaningful roles. Health-oriented product demand: Management described continued momentum in attribute-driven categories such as organic, gluten-free, and plant-based foods, which are outperforming more traditional grocery segments. This demand has driven both traffic and higher average spending among existing and new customers. New store productivity: Recently opened stores, including those from 2022 and 2023, are generating strong comparable sales, with management noting these newer locations are 'outperforming' the broader store base. The pipeline for new stores remains robust, supporting future growth. Loyalty program rollout: Early results from the pilot loyalty program in 35 stores have met or exceeded internal expectations. Leadership cited increased sign-ups and engagement, and outlined plans for a national rollout starting in the second half of 2025. Supply chain and self-distribution: The company has begun self-distributing fresh meat and seafood, aiming to improve product freshness and supply chain control. Management expects this initiative to yield both operational and margin benefits as it scales in coming quarters. E-commerce expansion: Online sales rose 28% year-on-year, now comprising 15% of total sales. Management highlighted growth across all digital partners, with Instacart remaining the largest contributor, and emphasized the value of omnichannel customers. Sprouts management expects future results to be shaped by ongoing investments in customer loyalty, supply chain capabilities, and category innovation. The outlook centers on sustaining growth in health-focused products and new markets, while balancing expense management and margin improvement. Loyalty program expansion: The national rollout of the loyalty program is expected to drive higher customer engagement and spending, with management citing increased frequency and basket size among participating customers. Supply chain optimization: Continued investment in self-distribution, particularly for fresh categories, is projected to support gross margin expansion and improved product availability, although management noted these benefits will build gradually through next year. Competitive and macro risks: Management acknowledged potential headwinds from broader economic uncertainty and possible cost inflation related to tariffs or supply chain inputs. The company is monitoring these developments but believes its differentiated product offering and customer focus provide resilience. Leah Jordan (Goldman Sachs): Asked how management balances reinvestment in growth initiatives with margin expansion given the moderation in comparable sales outlook. CFO Curtis Valentine responded that investments will continue at similar levels as last year, focused on loyalty, supply chain, and talent, while expecting sales growth to moderate through the year. Rupesh Parikh (Oppenheimer): Inquired about the early results and incremental benefits from the loyalty program pilot. President Nick Konat reported strong sign-ups and engagement, adding that national rollout is planned for the second half of the year, starting in Arizona. Ken Goldman (JP Morgan): Questioned whether new customer additions are accelerating and if Sprouts can benefit in a recessionary environment. Konat stated new customer growth is robust across both new and existing markets, and CEO Jack Sinclair believes the focus on health attributes should support demand regardless of macro conditions. Edward Kelly (Wells Fargo): Sought clarification on consumer behavior changes and margin benefits from tighter inventory. Leadership said there were no significant shifts in consumer behavior or trading down, and tighter inventory has aided margin, though efforts are ongoing to ensure full in-stock levels without missing sales. Mark Carden (UBS): Asked about capturing traffic from food-away-from-home channels and the potential impact of tariffs on store expansion costs. Management confirmed increased at-home meal spending and stated that, while monitoring building cost inflation, current returns are sufficient to absorb potential tariff effects. In the coming quarters, the StockStory team will be watching (1) the national rollout and customer adoption rates of Sprouts' new loyalty program, (2) operational execution and margin gains from expanded self-distribution of fresh meat and seafood, and (3) ongoing new store performance, particularly in emerging and existing markets. We will also monitor competitive responses as health-focused offerings proliferate across the grocery sector. Sprouts currently trades at a forward P/E ratio of 32.6×. Should you double down or take your chips? Find out in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
13-05-2025
- Health
- Business Wire
Sprouts Healthy Communities Foundation to Award $3 Million in Grants to Local Organizations Focused on Nutrition, Health, and Wellness
PHOENIX--(BUSINESS WIRE)--The Sprouts Healthy Communities Foundation today announced the launch of its 2025 Grants Program, with $3 million funding available to support local organizations that advance nutrition education, nutrition access, and wellness for children and adults in the communities where Sprouts operates. More than 500 local nonprofits will be selected to receive grants up to $10,000. 'At Sprouts, our purpose is to help people live and eat better, and we're proud to support the incredible work of local nonprofits who are doing just that,' said Jack Sinclair, chief executive officer of Sprouts Farmers Market. 'Through these grants, we're able to support communities where our team members and customers live.' The Foundation's mission is focused on improving health outcomes by supporting nutrition education, nutrition access, and wellness programs. The grant funding is available across three grant categories: Sprouting School Gardens – Funding for school-based gardening programs that provide students with hands-on learning opportunities that bring nutrition education to life Growing Healthy Kids – Funding for community-based programs focused on children's nutrition access, nutrition education, and health and wellness Wellness Across the Lifespan – Funding for community-based programs focused on adult health and wellness 'We know that small, local organizations are often the ones making the biggest difference,' said Lyndsey Waugh, executive director of the Sprouts Healthy Communities Foundation. 'These grants are about supporting the amazing work already happening on the ground–from school gardens and cooking classes to mobile pantries and family wellness programs. It's about meeting communities where they are and helping them thrive.' Last September, the Foundation awarded $4 million to 580 nonprofits and elementary schools focused on nutrition, health and wellness. In a coordinated, same-day event, team members from all 423 Sprouts stores delivered live checks to local organizations. These grants are fully funded by the Foundation's in-store Round Up program, where 100% of donations–collected at checkout–stay local to support health and wellness programs. Since 2015, the Sprouts Healthy Communities Foundation has awarded over $35 million in grants to organizations that are working on the front lines of nutrition education and wellness. An estimated 3 million children participate in programs supported by the Foundation each year and Sprouts expects to more than double its grant programs in the year ahead. Applications are open now through June 18, 2025. For more information or to apply visit ABOUT THE SPROUTS HEALTHY COMMUNITIES FOUNDATION The Sprouts Healthy Communities Foundation, established in 2015, is a nonprofit 501(c)3 organization focused on advancing nutrition education, nutrition access, and health and wellness programs in the states where Sprouts Farmers Market operates. Understanding that healthy habits are formed at a young age, the Foundation champions youth gardening and cooking programs that teach children skills for healthy eating and lifestyle choices that can be carried into adulthood. Through partnerships with hyper-local community organizations, the Foundation also works to expand nutrition access and wellness programs that serve families and adults. Since 2015, the Sprouts Healthy Communities Foundation has awarded $35 million in grants. To learn more, visit True to its farm-stand heritage, Sprouts offers a unique grocery experience featuring an open layout with fresh produce at the heart of the store. Sprouts inspires wellness naturally with a carefully curated assortment of better-for-you products paired with purpose-driven people. The healthy grocer continues to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. Headquartered in Phoenix, and one of the largest and fastest growing specialty retailers of fresh, natural and organic food in the United States, Sprouts employs approximately 35,000 team members and operates more than 440 stores in 24 states nationwide. To learn more about Sprouts, and the good it brings communities, visit
Yahoo
01-05-2025
- Business
- Yahoo
Sprouts Farmers Market Inc (SFM) Q1 2025 Earnings Call Highlights: Strong Sales Growth and ...
Total Sales: $2.2 billion, up 19% compared to the same period last year. Comparable Store Sales: Increased by 11.7%. Diluted Earnings Per Share: $1.81, a 62% increase from the previous year. Gross Margin: 39.6%, an increase of 129 basis points year-over-year. SG&A Expenses: $623 million, with $0.79 basis points of leverage. Net Income: $180 million. Operating Cash Flow: $299 million. Capital Expenditures: $49 million net of landlord reimbursement. Store Openings: 3 new stores, totaling 443 stores across 24 states. Share Repurchases: $219 million returned to shareholders, 1.6 million shares repurchased. Cash and Cash Equivalents: $286 million at the end of the quarter. E-commerce Sales Growth: Approximately 28%, representing 15% of total sales. Sprouts Brand Contribution: 24% of total sales. Warning! GuruFocus has detected 6 Warning Signs with CCI. Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sprouts Farmers Market Inc (NASDAQ:SFM) reported a strong first-quarter sales increase of 19%, driven by an 11.7% rise in comparable store sales and robust new store performance. Diluted earnings per share reached $1.81, marking a 62% increase compared to the same period last year. The company launched a new loyalty program aimed at enhancing customer engagement and driving sales growth. E-commerce sales grew approximately 28%, representing 15% of total sales for the quarter, indicating strong performance across all partners. Sprouts Farmers Market Inc (NASDAQ:SFM) has a healthy balance sheet, generating $299 million in operating cash flow and returning $219 million to shareholders through share repurchases. The company faces supply constraints and strong sales pressure on in-stock levels, resulting in additional shrink leverage. Store closure and other costs totaled approximately $2 million for the quarter, related to exiting leases and disaster recovery charges from the California wildfires. Sprouts Farmers Market Inc (NASDAQ:SFM) anticipates comp sales to moderate as they cycle higher comps from late 2024. The company is experiencing some cannibalization from new store openings, particularly in more established markets, impacting overall sales growth. There are ongoing challenges with self-distribution of fresh meat and seafood, which may not fully benefit the company until next year. Q: How are you thinking about potential reinvestment given the decelerating trend in your comp outlook and macro uncertainties? A: Curtis Valentine, CFO, explained that they are investing in areas like loyalty, supply chain systems, IT, and self-distribution, similar to last year. They aim for long-term sustainable earnings growth and expect growth to moderate as the year progresses. Q: Given the ongoing consumer shift to health and wellness, are you seeing any shift from competitors, and how confident are you in retaining your differentiated position? A: Jack Sinclair, CEO, emphasized their focus on maximizing their offer for health-enthusiast customers. He noted that while competitors may introduce similar products, Sprouts' focus on attributes like organic and gluten-free gives them a competitive edge in a growing market. Q: Can you provide insights into the performance of new stores and any surprises in their productivity? A: Curtis Valentine, CFO, stated that new stores are performing well, with strong comps from the '22 and '23 vintages. The three new stores opened in Q1 are also performing well, contributing positively to overall performance. Q: How is the loyalty program progressing, and are there any positive surprises? A: Nicholas Konat, President and COO, reported positive results from the loyalty program in 35 stores, with strong customer engagement. They plan a national launch in the second half of the year, starting in Arizona, with ongoing enhancements to the program. Q: Are you seeing any changes in consumer behavior due to macroeconomic factors, such as increased shopping at multiple stores? A: Jack Sinclair, CEO, noted that while consumers may shop at more stores during economic pressure, Sprouts' focus on specialist diets and eating at home positions them well to thrive in any economic environment. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
Sprouts (NASDAQ:SFM) Posts Better-Than-Expected Sales In Q1
Grocery store chain Sprouts Farmers Market (NASDAQ:SFM) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 18.7% year on year to $2.24 billion. Its non-GAAP profit of $1.81 per share was 16.8% above analysts' consensus estimates. Is now the time to buy Sprouts? Find out in our full research report. Revenue: $2.24 billion vs analyst estimates of $2.21 billion (18.7% year-on-year growth, 1.4% beat) Adjusted EPS: $1.81 vs analyst estimates of $1.55 (16.8% beat) Adjusted EBITDA: $263.2 million vs analyst estimates of $242.5 million (11.8% margin, 8.5% beat) Management raised its full-year Adjusted EPS guidance to $5.02 at the midpoint, a 9.1% increase Operating Margin: 10.1%, up from 7.9% in the same quarter last year Free Cash Flow Margin: 10.7%, up from 8.9% in the same quarter last year Same-Store Sales rose 11.7% year on year (4% in the same quarter last year) Market Capitalization: $16.92 billion 'We are delighted with Sprouts' strong start to 2025,' said Jack Sinclair, chief executive officer of Sprouts Farmers Market. Playing on the secular trend of healthier living, Sprouts Farmers Market (NASDAQ:SFM) is a grocery store chain emphasizing natural and organic products. A company's long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. With $8.07 billion in revenue over the past 12 months, Sprouts is a mid-sized retailer, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. As you can see below, Sprouts's 7.1% annualized revenue growth over the last six years (we compare to 2019 to normalize for COVID-19 impacts) was tepid, but to its credit, it opened new stores and increased sales at existing, established locations. This quarter, Sprouts reported year-on-year revenue growth of 18.7%, and its $2.24 billion of revenue exceeded Wall Street's estimates by 1.4%. Looking ahead, sell-side analysts expect revenue to grow 10.4% over the next 12 months, an acceleration versus the last six years. This projection is eye-popping and indicates its newer products will spur better top-line performance. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. A retailer's store count often determines how much revenue it can generate. Over the last two years, Sprouts opened new stores at a rapid clip by averaging 5.9% annual growth, among the fastest in the consumer retail sector. This gives it a chance to become a large, scaled business over time. When a retailer opens new stores, it usually means it's investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance. Note that Sprouts reports its store count intermittently, so some data points are missing in the chart below. A company's store base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it's prudent to close some locations and use the money in other ways. Same-store sales provides a deeper understanding of this issue because it measures organic growth at brick-and-mortar shops for at least a year. Sprouts has been one of the most successful retailers over the last two years thanks to skyrocketing demand within its existing locations. On average, the company has posted exceptional year-on-year same-store sales growth of 6.6%. This performance suggests its rollout of new stores is beneficial for shareholders. We like this backdrop because it gives Sprouts multiple ways to win: revenue growth can come from new stores, e-commerce, or increased foot traffic and higher sales per customer at existing locations. In the latest quarter, Sprouts's same-store sales rose 11.7% year on year. This growth was an acceleration from its historical levels, which is always an encouraging sign. We were impressed by Sprouts's optimistic EPS guidance for next quarter, which beat analysts' expectations. We were also excited its EBITDA outperformed Wall Street's estimates. Zooming out, we think this was a solid quarter. Despite this, shares traded down 5% to $162.07 immediately after reporting. So do we think Sprouts is an attractive buy at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
