In a release dated October 30th, Sprouts Farmers Market (SFM) reported results for the 3rd quarter of FY 2024 ended September 29th. Sprouts is regarded as a high-end grocery chain competing for health-conscious and affluent suburban consumers. Results for the quarter beat estimates on both the top and bottom lines and for growth in same store sales.
For the period, the Company posted net income of $91.6 million on net sales of $1,946 million with a diluted EPS of $0.91. Comparable figures for the 3rd quarter ended October 1st 2023 were net income of $65.2 million on net sales of $1,713 million with a diluted EPS of $0.64.
Comparing Q3 of 2024 with Q3 of the previous fiscal year, Sprouts Farmers Market increased revenue by 13.6 percent. Gross margin rose to 38.1 percent from 36.5 percent in Q3 2023. Operating margin was 6.3 percent compared to5.1 percent for Q3 2023. Sprouts generated a comparable same-store sales growth of 8.4 percent compared to the corresponding 3rd quarter of 2023.
In commenting on results, Jack Sinclair, CEO, stated, “The third quarter was another exceptional performance by our Sprouts team." He added, "We are driving robust traffic growth and continue to execute at a very high level. We remain confident in our long-term growth potential."
Guidance for FY 2024 was raised to include net sales growth of 12.0 percent; a comparable same-store sales increase of 7.0 percent; adjusted diluted EPS of $3.64 to $3.68 and net unit growth of 33 stores requiring capital expenditure of $205 to $215million.
The company posted total assets of $3,585 million including $590 million as goodwill and intangibles with the balance sheet detailing long-term debt and lease liabilities of $1,562 million.
Sprouts Farmers Market had a market capitalization of $12,830 million on November 1st and has traded for the past 52-weeks over a range of $39.98 to $135.10 with a 50-week moving average of $110.08 and has a forward P/E of 33.8
On October 30th SFM closed at $119.00 and closed post-release on the following day at $128.34, up 7.8 percent. Sprouts generated a trailing twelve-month operating margin of 6.3 percent and a profit margin of 4.7 percent. Return on assets was 9.2 percent and the return on equity attained 28.6 percent.
Sprouts employs 35,000 and operated 428 stores in 23 states on September 29th 2024