Key Highlights

  • Consensus EPS of 1.23 compares with second-quarter diluted EPS of 1.37, against 1.35 a year earlier.
  • Consensus revenue of USD 2.33 billion compares with second-quarter net sales of USD 2,325,804 thousand, against USD 2,220,602 thousand.
  • Net sales rose 5%, or USD 105.2 million, while comparable store sales decreased 1.0% against an increase of 10.2%.
  • The company ended the quarter with 490 stores against 455 a year earlier, after opening 7 stores.

Sprouts Farmers Market (NASDAQ:SFM) reports third-quarter results on Wednesday, Oct. 28, after the market closes. Consensus stands at EPS of 1.23 on revenue of USD 2.33 billion, and the company has a market capitalization of USD 6.15 billion.

Sprouts Farmers Market operates retail stores and reported 490 stores at the end of the second quarter. Second-quarter net sales were USD 2,325,804 thousand against USD 2,220,602 thousand, and net income was USD 129,195 thousand against USD 133,703 thousand.

Estimates Against the Last Reported Quarter

The EPS estimate of 1.23 is below the second-quarter diluted EPS of 1.37, which compared with 1.35 a year earlier. The estimates table does not state its EPS basis. The revenue estimate of USD 2.33 billion compares with the USD 2,325,804 thousand of net sales reported, which compared with USD 2,220,602 thousand.

Basic EPS was 1.37 against 1.37. Gross profit was USD 900,648 thousand against USD 862,600 thousand, and operating income was USD 174,174 thousand against USD 179,356 thousand.

What the Filing Gives and What the Sources Leave Open

The sources supplied include no earnings call transcript or published guidance, so there are no management ranges to set against the estimates. The filing carries no third-quarter figures.

The filing states that the sales increase was driven by new stores opened in the last twelve months, partially offset by a 1.0% decrease in comparable store sales. It states that comparable stores contributed approximately 93% of total sales and that the company believes its store expansion supports a runway of approximately 10% annual unit growth.

Sales, Store Count and Comparable Sales Detail

Net sales for the thirteen weeks totaled USD 2.3 billion, an increase of USD 105.2 million, or 5%. Comparable store sales decreased 1.0% against an increase of 10.2% a year earlier.

The company began the quarter with 483 stores against 443, opened 7 stores against 12 and ended with 490 stores against 455. Cost of sales was USD 1,425,156 thousand against USD 1,358,002 thousand.

Income Statement Lines, Cash and Financing

Income before income taxes was USD 174,106 thousand against USD 179,787 thousand, and net income was USD 129,195 thousand against USD 133,703 thousand. Operating income was USD 174,174 thousand against USD 179,356 thousand.

Cash and cash equivalents were USD 223,928 thousand against USD 257,282 thousand at year end, and inventories were USD 436,814 thousand against USD 427,095 thousand. Cash flows used in financing activities were USD 213,463 thousand against USD 293,734 thousand for the six months. The estimates table lists a market capitalization of USD 6.15 billion.

Items to Track in the Report

Reported EPS against 1.23 and net sales against USD 2.33 billion are the headline comparisons. Other markers are comparable store sales, store openings and gross profit.