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PHOENIX — Sprouts Farmers Market is reaping the rewards of a growing health-conscious customer base. For the third quarter ended September 29, the specialty grocer posted a 14% year-over-year increase in net sales. The grocer, known for its fresh, natural, and organic offerings, saw comparable store sales climb by 8.4%, driven by robust in-store traffic and strong customer loyalty.
"The third quarter was another exceptional performance by our Sprouts team," said CEO Jack Sinclair. "We are driving robust traffic growth and continue to execute at a very high level. We remain confident in our long-term growth potential.”
The retailer reported net sales of $1.9 billion and diluted earnings per share of $0.91, up from $0.64 the previous year. The gains come amid the company’s ongoing store expansion. Nine new locations opened during the quarter, bringing the total store count to 428 across 23 states.
Sprouts continues to improve its financial stability. The company ended the quarter with $310 million in cash and a zero balance on its $700 million revolving credit facility. It generated $520 million in cash from operations and has invested $132 million in capital expenditures so far this year.
Shareholders also received returns through Sprouts’ repurchase of 264,000 shares, a total investment of $25 million, which underlined the company’s confidence in its growth trajectory.
Looking ahead, Sprouts anticipates comparable store sales growth of 8-10% for the fourth quarter, with adjusted diluted earnings per share projected between $0.67 and $0.71. For the full year, the company expects net sales growth of approximately 12% and plans to add 33 new stores, with adjusted diluted earnings per share estimated to reach $3.64 to $3.68.
However, due to delays from Hurricane Milton, the opening of two Florida stores will be postponed until early 2025, a minor setback in the retailer’s aggressive expansion strategy.
