Latest news with #storeexpansion
Globe and Mail
07-07-2025
- Business
- Globe and Mail
Can Sprouts Farmers Market Hit Its Goal of 1000 Stores Nationwide?
Sprouts Farmers Market, Inc. SFM has set an ambitious long-term goal of expanding its footprint to more than 1,000 stores nationwide. This target signifies substantial growth from its current 443 stores across 24 states as of March 30, 2025. The company opened three new stores in the first quarter of 2025 and plans to add at least 35 more throughout the full year, indicating a consistent unit growth strategy. A key driver of this expansion is Sprouts Farmers' focus on a more efficient, smaller-box store format, aimed at reducing growth risks and boosting new store performance. This strategy, along with the pursuit of new locations and efforts to improve supply-chain capacity, including potential sites in the Northeast and Midwest, is essential for supporting such a large network of stores. New stores open with an average of $13 million in first-year sales and ramp up another 20-25% over the following four years. With strong cash-on-cash returns and break-even expected in year one, each store is a profit center. The company's real estate pipeline already includes nearly 120 approved sites and more than 85 signed leases, signaling a clear path toward its long-term goal of 1,000 stores. Nearly 80% of stores are within 250 miles of a distribution center, and Sprouts Farmers is deepening its supply chain with self-distribution of fresh categories like meat and seafood. The company's long-term strategic target includes approximately 10%-unit growth, reinforcing its commitment to achieving the 1,000-store milestone. Store Count Showdown: Costco & Dollar General vs. Spouts Within the retail sector, Sprouts Farmers operates alongside giants like Costco Wholesale Corporation COST and Dollar General Corporation DG, each with distinct models. Costco plans to add 24 net new locations in fiscal 2025, taking the total global warehouse count to 914, including 629 locations in the United States. Costco's consistent traffic growth and a 92.7% U.S. renewal rate underscore brand loyalty and operational strength. Dollar General, by contrast, operates more than 20,000 stores nationwide. In fiscal 2025, Dollar General is set to carry out an ambitious real estate agenda encompassing roughly 4,885 projects. This includes the planned launch of approximately 575 new U.S. stores and up to 15 additional locations in Mexico. Alongside expansion, Dollar General is focusing on improving its existing footprint through the remodeling of about 2,000 stores under its "Project Renovate" initiative and another 2,250 stores through the "Project Elevate" program. SFM's Price Performance, Valuation and Estimates Sprouts Farmers stock has been a standout performer, with shares rallying 27.7% year to date, outpacing the industry' s growth of 15.8%. From a valuation standpoint, SFM's forward 12-month price-to-sales ratio stands at 1.72, higher than the industry's ratio of 0.26. SFM carries a Value Score of C. The Zacks Consensus Estimate for Sprouts Farmers' current financial-year sales and earnings per share implies year-over-year growth of 13.6% and 35.5%, respectively. Sprouts Farmers Market currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dollar General Corporation (DG): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis Report
Telegraph
01-07-2025
- Business
- Telegraph
M&S shops get £300m upgrade as part of cyber attack recovery
Marks & Spencer will spend £300m boosting nearly 40 stores across the country as the retail giant seeks to win shoppers back after a devastating cyber attack. On Tuesday, the retailer said it was 'significantly accelerating' efforts to revamp its network of stores across the UK, with plans to open 16 new sites, refurbish 12 existing locations and extend nine stores this financial year. Of the 16 new sites, 12 will be M&S Food halls situated in key middle England market towns such as Abingdon, Oxfordshire; Cannock, Staffordshire; and Farnham, Surrey. Stuart Machin, the M&S chief executive, said he had to be 'responsible with shareholder money', but was pushing ahead with plans to bring more of its shops up to date, adding: 'We have to go fast. I'm hoping by 18 months' time, half of our store estate will be new or renewed.' In the last year, M&S said it had signed 47 deals for new and renewed stores to open by early 2028, marking a step up in investment. It comes as the retailer battles to win shoppers back after being struck by a cyber attack which wiped out its systems in April. Mr Machin told shareholders on Tuesday that M&S needed 'to just get back, get our product back online, get the stores in even better shape', adding: 'I've been in stores every weekend, and we're okay, but we're not as good as we should be.' The retailer has been racing to get its systems back up following the hack this spring, which forced the company to stop taking online orders and left supermarket shelves empty. M&S restarted online orders last month. However, half of its online operations remain unavailable, including click-and-collect. On Tuesday, Mr Machin said: 'Within the next four weeks, we're aiming for the whole of online to be restored. I'm really hoping by August, the majority of this is behind us.' It follows warnings from M&S that the cyber attack would deal a £300m hit to profits this year. On Tuesday, M&S faced questions from shareholders over Mr Machin's pay package. Last month, it emerged that his pay jumped to more than £7m weeks before the cyber attack. One shareholder said the chief executive should 'take full responsibility by reducing his bonus'. Archie Norman, the M&S chairman, said Mr Machin's pay for the current financial year would reflect the disruption, although said it was too early to say how his total package would be affected. 'We want everyone to go gangbusters for the rest of the year so let's see where we get to.' He described the cyber attack as an 'out-of-body experience', adding: 'We came out of the year end with a bit of a spring in our step and of course, in business life events have a way of tripping you up and putting you on your backside again.'
Yahoo
12-06-2025
- Business
- Yahoo
Dollarama Inc (DLMAF) Q1 2026 Earnings Call Highlights: Strong Sales Growth and Strategic ...
Revenue: Sales increased 8.2% to over $1.5 billion. Same-Store Sales (SSS): Grew 4.9%, with a 3.7% increase in transactions and a 1.2% increase in average transaction size. Gross Margin: Improved to 44.2% from 43.2% in the previous year. EBITDA: $496.2 million, with a margin of 32.6%. Adjusted EBITDA: Excluding a $10.4 million unrealized gain, EBITDA was $485.8 million, with a margin of 31.9%. Diluted Net Earnings Per Share: Increased by 27.3% to $0.98. Store Count: Opened 22 net new stores in Canada, totaling 1,638 stores. Dollarcity Store Count: Opened 12 net new stores, totaling 644 stores in Latin America. SG&A Expenses: Represented 15.3% of sales, slightly down from 15.4% the previous year. Dividend: Quarterly cash dividend of $0.1058 per share announced. Capital Expenditures: Updated range to $285 million to $330 million for fiscal 2026. Warning! GuruFocus has detected 6 Warning Sign with NNWWF. Release Date: June 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Dollarama Inc (DLMAF) reported a strong start to fiscal 2026 with a 4.9% increase in same-store sales, driven by sustained demand for consumables and positive seasonal performance. The company opened 22 net new stores in Q1, bringing the total store count in Canada to 1,638, and plans to open between 70 and 80 net new stores this year. Dollarcity, the Latin American subsidiary, opened 12 net new stores, expanding its presence in Colombia, Peru, El Salvador, and Guatemala to 644 stores. The company is set to enter the Mexican market with the first Dollarcity stores opening imminently, marking a significant milestone for its international expansion. Gross margin improved to 44.2% from 43.2% in the previous year, primarily due to lower logistics costs and reduced inventory shrinkage. The macroeconomic environment remains uncertain, with consumer confidence at an all-time low earlier in the year, impacting spending behavior. Counter tariffs imposed by Canada on goods imported from the US continue to pose challenges, particularly affecting national brand consumable products. The company is facing potential headwinds from continued mix shifts, foreign exchange fluctuations, and shipping rates, which could impact future gross margins. Dollarama Inc (DLMAF) anticipates losses from its Mexico market entry, with expectations of continued losses for the next two to three years before breaking even. The company did not conduct any share buybacks in Q1 due to market uncertainty and upcoming capital needs, impacting its capital allocation strategy. Q: Can you provide insights on the consumer spending backdrop and category performance? A: Neil Rossy, President and CEO: Consumables continue to be strong, and Easter performed better than last year. Overall, the market is stable in terms of mix relative to the last quarter. Q: What are your expectations for the Mexican market entry, and how should we think about the number of stores and results over the next 12 to 24 months? A: Neil Rossy, President and CEO: We are excited about entering Mexico, a large market with a long runway for store openings. We plan to open a few stores initially to test the market and will assess the results before ramping up store openings. Q: Can you elaborate on the strong gross margin performance and the sustainability of lower logistics costs? A: Patrick Bui, CFO: The improvement in gross margin is due to better planning and balancing of volumes in our warehouse and distribution centers. We expect to continue benefiting from these gains, although there are counterbalancing factors like mix shift and FX rates. Q: How do you view the current traffic trends and the sustainability of these trends? A: Patrick Bui, CFO: We are pleased with more Canadians visiting our stores and buying more units. The pandemic helped increase our appeal to higher-income Canadians, and we believe this trend is sustainable. Q: What are your thoughts on pricing strategy given the fragile consumer environment? A: Patrick Bui, CFO: We follow a price follower strategy and do not plan to change our pricing strategy to gain market share. We aim to maintain our value proposition for customers. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. 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
Yahoo
03-06-2025
- Business
- Yahoo
Bata India Ltd (BOM:500043) Q4 2025 Earnings Call Highlights: Navigating Revenue Challenges ...
Revenue from Operations: INR 788 crores, a decline of about 1.2% compared to the previous year, same quarter. Gross Margin: INR 455 crores, with an erosion of about 230 basis points versus the last year, same quarter. EBITDA Margin: 25.5%, a decrease of about 14 basis points compared to last year. Tax Expense: INR 46 crores, a decline of about 215 basis points versus last year, same quarter. Store Expansion: Increased to about 146 stores from less than 40 in the previous quarter. Inventory Reduction: Overall inventory dropped by 16%, with aged inventory reduced by 30-35%. Franchise Stores: Standard at about 625 stores. Retail Outlets Expansion: Key retail outlets expanded to almost 1,400 outlets. Warning! GuruFocus has detected 3 Warning Signs with CRLBF. Release Date: June 02, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bata India Ltd (BOM:500043) has significantly expanded its store network from less than 40 to 146 stores, indicating robust growth and market penetration. The company has successfully reduced inventory by 25% and improved size set availability by 300 basis points, enhancing customer satisfaction. The introduction of new collections like Power Move+ and Floatz has driven volume growth, with Floatz achieving a growth rate of over 40% and doubling in size over two years. Bata India Ltd (BOM:500043) has improved retrieval time for customers to less than 1 minute and 45 seconds, enhancing the shopping experience. The company is focusing on premiumization with successful launches like the Stamina+ collection and Hush Puppies expansion, which are expected to unlock future revenue. Bata India Ltd (BOM:500043) reported a revenue decline of 1.2% compared to the previous year, indicating challenges in maintaining sales growth. The gross margin eroded by 230 basis points, partly due to increased franchising operations and value proposition adjustments. The EBITDA margin decreased by 14 basis points, with changes in accounting for licensed brands affecting comparability. Muted demand conditions have impacted overall revenue performance, with the company acknowledging tight market conditions. The company faces challenges in achieving desired revenue growth from lower price point products, despite some volume growth. Q: Can you explain the factors contributing to the gross margin contraction this quarter? A: Amit Aggarwal, CFO, explained that the mix of franchise and e-commerce operations impacts gross margins. Additionally, efforts to provide value propositions and reset costs for key products have contributed to the contraction. Q: What is the channel mix in terms of revenue for this year? A: Amit Aggarwal stated that retail accounts for about 70% of revenue, franchise at 7.5%, e-commerce at 10%, and R&D at 12-13%. Q: How should we think about store addition momentum going forward? A: Gunjan Shah, CEO, mentioned that store additions should be higher next year, maintaining an 80/20 ratio between franchise and COCO models. Q: Can you elaborate on the lower other expenses this quarter? A: Amit Aggarwal explained that a change in the construct of a licensed brand led to the creation of an intangible asset, affecting depreciation and finance costs. This will be recurring for the next three quarters. Q: What are the opportunities arising from the implementation of BIS standards? A: Gunjan Shah noted that Bata India is 100% localized, with BIS standards eliminating less than 5% of imports. This presents an export opportunity for Bata globally. 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
Zawya
02-06-2025
- Business
- Zawya
Jollibee Continues Stellar Growth Across Southeast Asia, Strengthens Leadership in Key Markets
MANILA, PHILIPPINES - Media OutReach Newswire - 2 June 2025 - Jollibee, the flagship brand of Jollibee Group, continues its remarkable growth across Southeast Asia, recording strong sales performance and store expansion across key markets in the region. In Q1 2025, the brand achieved an impressive 27.8% systemwide sales growth across its Southeast Asia operations outside the Philippines, including Vietnam, Malaysia, Singapore, and Brunei. Jollibee's strong showing in Southeast Asia strongly contributed to the Jollibee Group's third consecutive year of record performance in 2024. The brand opened 51 new stores in the region in 2024, including its 200 th store in Vietnam, which reflects Jollibee's commitment to bringing the joy of eating to the region's most dynamic quick-service restaurant (QSR) markets. "We are grateful for our consumers' love for Jollibee, which reflects the strength of our flagship brand and the appeal of our offerings in different markets," said Ernesto Tanmantiong, Global President and Chief Executive Officer of the Jollibee Group. "Our continued strong growth across our international markets, particularly Southeast Asia, is a testament to the hard work of our team and commitment to our 5-year strategy of tripling attributable net income." Winning with Local Love, Taste, and Innovation The brand's continuous effort to build relevance and resonance with local customers has resulted in strong local patronage across all Southeast Asian markets. In Vietnam, for example, where Jollibee now operates over 200 stores, nearly all customers are Vietnamese. In Brunei, Jollibee has established a leading position as the market leader in the QSR category, with virtually all customers also being local Bruneians. The brand is also experiencing strong community patronage in Singapore and Malaysia, where the majority of its consumers are locals. Another key driver of Jollibee's success in the region is the taste superiority of its products, especially the brand's world-famous Chickenjoy fried chicken—recognized by global platforms such as USA Today as the"Best Fried Chicken" and lauded by renowned publications including Yahoo!, and South China Morning Post. The brand's Spicy Chickenjoy is also continuing to make waves, with many local consumers in Singapore and Malaysia praising its uniquely spicy kick compared to the competition. Beyond its fan-favorite bestsellers, Jollibee's success has also been fueled by its ability to introduce locally resonant menu innovations, including Chili Chicken in Vietnam and the Spicy Spaghetti in Malaysia, which have been well-received by local consumers. "Our commitment to delivering superior taste has fueled our growth in Southeast Asia, and we're grateful to have passionate franchisees and partners who share in this mission," shared Dennis Flores, President of Jollibee Europe, Middle East, Asia, and Australia."We are excited to strengthen these relationships, while also seeking new franchisees for new markets as we bring the joy of superior taste to more customers around the world." Accelerating Expansion in Southeast Asia Riding on this momentum, Jollibee will continue its store network expansion across Southeast Asia, contributing to the global food company's mid-term goal of tripling its business in five years. This ongoing expansion reinforces Southeast Asia's critical role in Jollibee Group's global growth strategy, as the company continues its commitment to spreading joy through superior taste through global expansion, combining strong brand equity, product excellence, and operational agility. For more information on Jollibee Group, visit Jollibee Group's official website. Hashtag: #JollibeeGroup The issuer is solely responsible for the content of this announcement. About Jollibee Group The Jollibee Group (PSE: JFC) is one of the world's fastest-growing restaurant companies, driven by its purpose of spreading joy through superior taste. Its portfolio includes 19 brands with over 9,900 stores across 33 countries. The Jollibee Group's portfolio includes nine wholly owned brands (Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal, Yonghe King, Hong Zhuang Yuan, Smashburger and Tim Ho Wan), five franchised brands (Burger King, Panda Express, Yoshinoya, Common Man Coffee Roasters, and Tiong Bahru Bakery in the Philippines), and ownership stakes in other key brands like The Coffee Bean and Tea Leaf (80%), Compose Coffee (70%), SuperFoods Group that operates Highlands Coffee (60%), and bubble tea brand Milksha (51%). The Company also has membership interests in Tortazo, LLC, along with Chef Rick Bayless, for Tortazo in the U.S. and has recently invested in Botrista, a leader in beverage technology. The Jollibee Group's global sustainability agenda, Joy for Tomorrow, underscores its commitment to sustainable business practices across food safety, employee welfare, community support, good governance, and environmental responsibility, among others. These focus areas are aligned with the United Nations Sustainable Development Goals (UN SDGs). The Jollibee Group has been recognized as the Philippines' Most Admired Company by the Asian Wall Street Journal, named one of Asia's Fab 50 Companies, and listed among Forbes' World's Best Employers and Top Female-Friendly Companies. The Company is also a three-time Gallup Exceptional Workplace Award recipient and featured in TIME's World's Best Companies and Fortune's Southeast Asia 500 List. Jollibee Group
