Sprouts Farmers Market Reports Q4 Dip in Sales

Phoenix-based Sprouts Farmers Market reported Feb. 24 that it saw a dip in sales during the fourth quarter of fiscal 2021.

Fourth-quarter net sales were $1.49 billion, down 7% compared with the year-ago period, with 2020's extra sales week accounting primarily for the slide. Comp sales fell 1.1% year over year in the fourth quarter but were up 2.7% on a two-year stack.

Net income fell to $36 million in the fourth quarter from $68 million in the year-ago period and adjusted net income of $70 million for the same quarter. However, net income was up vs. the $32 million recorded in the fourth quarter of 2019. The company opened 12 new stores and relocated one last year, bringing its total to 374 stores in 23 states as of Jan. 2, 2022.

For the full fiscal year, Sprout reported that comp sales were off 6.7% from fiscal 2020's total, but were up 0.4% vs. all of 2019.

Diluted earnings per share dipped in 2021's final quarter to $0.32 from $0.58 in fourth-quarter 2020. For the full year, EPS fell to $2.10 from $2.43 in 2020.

"We are pleased that results for both sales and earnings exceeded our expectations for the quarter and are encouraged by the fact that we experienced quarterly positive comp transactions,” Jack Sinclair, CEO of Sprouts Farmers Market, said in a statement. "We made progress in 2021 on our strategic road map, which sets us up for continued growth and financial success in the years to come."