Sprouts Farmers Market is handling a challenging marketplace in 2023 with continued confidence. The Phoenix, Ariz.-based grocer announced another quarter of positive gains, with fourth-quarter net sales coming in at $1.6 billion, which is a 6% increase vs. fourth quarter 2021.
“We are pleased with our strong fourth-quarter results, closing out the year with double-digit earnings per share growth,” said Jack Sinclair, chief executive officer of Sprouts Farmers Market. “These solid trends reflect the resiliency of healthy, natural and organic food, and give us confidence in our future business.”
Growth will continue to be a big trend for Sprouts Farmers Market in 2023, as the chain plans to open 30 stores. That would almost double the production in 2022, when 16 stores were opened, including seven in the fourth quarter alone. Sprouts Farmers Market is hoping for a net sales growth between 4-6% in 2023, with its comparable store sales growth rising in the low single digits.
For all of FY 2022, Sprouts Farmers Market’s net sales amounted to $6.4 billion, which is a 5% increase compared to FY 2021. Comparable store sales, which rose 2.9% in the fourth quarter, were up 2.2% for the year.
“While we recognize the near-term economic environment is difficult to predict, the stability of our recent sales in encouraging,” said Sinclair. “We are optimistic about our ongoing cash generation and our ability to invest in our business for growth.”
Fourth quarter news highlight
In November, Sprouts Farmers Market announced it was available on the DoorDash marketplace in select cities for on-demand grocery delivery. Phoenix, Ariz., was the first to implement the online retail technology, and the DoorDash rollout was expected to play out in phases.
More than 20,000 products from Sprouts are available for delivery on the DoorDash marketplace, including organic groceries, local farm-fresh produce, keto friendly, gluten-free, vegan, and plant-based items.
“We are excited to respond to customer demand for fast, convenient delivery of our high-quality better-for-you products that you can’t find anywhere else,” said Nick Konat, president and chief operating officer of Sprouts. “By partnering with DoorDash, more people will be able to access our uniquely healthy assortment and the season’s freshest, most delicious produce.”
