Sprouts Farmers Market should be in for a solid year following promising Q2 results

Sprouts Farmers Market is staying on the course it set out to take for 2023 following strong second quarter results. The grocer is on mark with fiscal year projections so far.

Increases were seen across the board compared to the second quarter of 2022. Net sales ($1.7 billion) showed a 6% increase year-over-year and comparable store sales registered 3.2% growth. Gross profit was almost $626 million, which is a slight uptick compared to Q2 2022 (just over $580 million), while net income came in at just over $67.3 million (it was under $62 million in 2022). Adjusted EBITDA stood at over $132 million (it was around $118.6 million a year ago).

Sprouts opened six new stores during the 13-week period while closing 10, which impacted the selling, general, and administrative expenses. Those were up 8% to $498 million year-over-year.

As for the rest of 2023, the grocer still plans on opening a total of 30 stores and expects net sales growth to be around 5% to 6%. Comparable store sales growth is projected to be 2% to 3%, while Adjusted EBIT should fall in the range of $378 million to $390 million.

“We are encouraged by another solid quarter, as we further establish Sprouts as a go-to healthy specialty food retailer,” said Jack Sinclair, chief executive officer of Sprouts Farmers Market. “We believe we are on track with our long-term growth strategy, with positive traffic, an enhanced supply chain, and continued product innovation.”

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First quarter results were strikingly similar for Sprouts, as the company pulled in total sales of $1.7 billion, which was a 6% increase year-over-year, and a new and comparable store sales growth of 3.1%.