Sprouts Farmers Market continues to ride a strong wave as it reported another quarter of strong growth.
The retailer’s first quarter 2024 earnings registered a 9% year-over-year increase at $1.9 billion and comparable store sales growth of 4%.
Gross profit came in at just over $722.3 million, which is more than $70 million better than Q2 2023.
“We were pleased with our impressive financial results this quarter, with strength in comparable store sales, traffic, and ecommerce,” said Jack Sinclair, chief executive officer of Sprouts Farmers Market. “These outcomes highlight the effectiveness of our strategy and the exceptional execution by our team members across the country. We are reinforcing our position as a leading specialty food retailer as we build new stores in line with our growth plans.”
Sprouts Farmers Market opened seven stores during Q1 2024.
The streak has been impressive. According to Placer.ai, year-over-year visits for the grocer increased every month in 2023, and it has been above the curve in terms of the industry average since mid-2023.
During Q1 this year, visits were up 13.3% year over year in February and 11.9% in March.
Back in March, Sprouts executives said at an investor conference that a new loyalty program the retailer is planning to begin testing in 2024 will be unique to the grocery marketplace.
The goal is to launch the program in 2025, with testing happening in two markets this year followed by additional markets later.
Sinclair said he wants to create a more personalized experience for Sprouts’ specific shopper niche.
Sprouts Farmers Market is projected 3% to 4% store sales growth in Q2, and for the year net sales growth is expected to increase 7% to 8% and comparable store sales growth should go up in the 2.5% to 3.5% range.
Sprouts stock price was down 1.74% today but the earnings report was released after market hours.
