PHOENIX, AZ - Fresh produce continues to dominate during these difficult times, and Sprouts Farmers Market saw that growth positively boost its sales, resulting in $1.6 billon in its second quarter.
“I am proud of how our Sprouts team members have navigated these unprecedented circumstances we live in today. Our culture rooted in respect, inclusion, and caring for one another has shone through in everything our team members do for our customers and for each other,” said Jack Sinclair, Chief Executive Officer. “Our strong second-quarter performance was driven by the strategic changes we have begun to implement across our business and the continued positive impact on demand from the COVID-19 pandemic.”
According to a press release outlining the retailer's Q2 results, customers continue to consume much of their food at home due to the COVID-19 pandemic, elevating grocery spending and e-commerce.
“The trajectory of the COVID-19 situation remains uncertain, clouding the impact to the food retail industry over the coming quarters,” said Denise Paulonis, Chief Financial Officer. “While our sales continue at elevated levels, so do additional costs associated with our team members and stores. Predicting specific outcomes remains difficult, and accordingly, we are not stating a new outlook range. We remain confident in the financial strength of our business and our new long-term growth strategy presented last quarter.”
Some highlights from the report include:
- Net sales of $1.6 billion; a 16 percent increase from the same period in 2019
- Comparable store sales growth of 9.1 percent and two-year comparable store sales growth of 9.2 percent
- Net income of $67 million and adjusted net income of $70 million; compared to net income and adjusted net income of $35 million from the same period in 2019
- Diluted earnings per share of $0.57 and adjusted diluted earnings per share of $0.59; compared to $0.30 diluted and adjusted diluted earnings per share from the same period in 2019
Aside from these monumental growth patterns, Sprouts has implemented a new marketing strategy aimed at driving fresh produce to the forfront of its business.
“We were able to accelerate our planned shift from print to digital for our weekly ad, resulting in a reduced number of items on ad and more sales at everyday retail prices,” said Paulonis. “As well, our produce team was able to procure excess products in the marketplace at great prices.”
Sinclair added, “Produce is still promoting fairly aggressively...As we head into the second half of the year, our early strategic wins give me confidence in our long-term direction, and our team members’ dedication assures me we will continue to provide our communities and customers healthy food for their families,” concluded Sinclair.
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