Sprouts Farmers Market, Inc. (Nasdaq: SFM) has released its financial results for the 13-week fourth quarter and 52-week fiscal year ending December 29, 2024. The company reported significant growth in both revenue and earnings, reflecting the continued success of its strategic initiatives and the strong demand for its fresh, natural, and organic products.
CEO Commentary
2024 was a remarkable year for our company,” said Jack Sinclair, Chief Executive Officer of Sprouts Farmers Market. “Our teams across the business delivered on our strategy and set us up for even greater success in the future. Our unique, attribute-driven offering resonates more than ever with our target customers. Sprouts Farmers Market They trust Sprouts as a partner on their healthy living journey, and it shows in our results. I’m grateful to our team members for their hard work, and we are excited for 2025 and the years ahead.”
Fourth Quarter 2024 Financial Highlights
- Net sales reached $2.0 billion, an 18% increase compared to the same quarter in 2023.
- Comparable store sales grew by 11.5%, showcasing strong customer engagement and demand.
- Diluted earnings per share (EPS) increased to $0.79, up from $0.49 in Q4 2023.
- New store openings: The company added 12 new locations during the quarter, strengthening its market presence.
Full-Year 2024 Financial Highlights
- Net sales totaled $7.7 billion, a 13% year-over-year increase from 2023.
- Comparable store sales grew by 7.6%, driven by strong consumer demand for Sprouts’ fresh and organic offerings.
- Diluted EPS surged to $3.75, compared to $2.50 in the prior year. Adjusted diluted EPS stood at $2.84 in 2023.
- New store openings: A total of 33 new stores were opened in 2024, bringing the company’s total to 440 stores across 24 states as of December 29, 2024.
Financial Position: Leverage and Liquidity in 2024
Sprouts Farmers Market maintained a strong financial position throughout 2024:
- Cash and cash equivalents stood at $265 million at year-end, ensuring financial stability.
- The company had zero balance on its $700 million revolving credit facility after a $125 million voluntary paydown.
- A new $600 million share buyback program was authorized, and the company repurchased 2.7 million shares of common stock, amounting to a total investment of $238 million (excluding excise tax).
- Cash from operations totaled $645 million, reflecting healthy cash flow generation.
- Capital expenditures amounted to $200 million, net of landlord reimbursements, which supported store openings and infrastructure improvements.
2025 Outlook: Strong Growth Expected
First Quarter 2025 Projections
For the first quarter of 2025, Sprouts Farmers Market anticipates:
- Comparable store sales growth between 10% and 11%.
- Adjusted diluted EPS in the range of $1.51 to $1.55.
Full-Year 2025 Projections
The company is optimistic about 2025 and has provided the following full-year guidance:
- Net sales growth between 10.5% and 12.5%.
- Comparable store sales growth projected between 4.5% and 6.5%.
- Adjusted EBIT expected to range between $590 million and $610 million.
- Adjusted diluted EPS anticipated to be between $4.52 and $4.68.
- Unit growth of at least 35 new store openings, expanding the company’s footprint further.
- Capital expenditures, net of landlord reimbursements, are estimated to be between $230 million and $250 million.
Strategic Focus for 2025
Sprouts Farmers Market remains committed to delivering high-quality, fresh, and organic products to its customers while driving long-term growth. Sprouts Farmers Market The company plans to leverage its customer-first approach, focusing on:
- Expanding its store footprint: With a goal of at least 35 new stores in 2025, Sprouts aims to extend its reach to more customers nationwide.
- Enhancing operational efficiencies: Through investments in supply chain improvements and digital transformation, the company seeks to improve productivity and reduce costs.
- Growing its private label offerings: Sprouts continues to innovate its in-house product lines, meeting consumer demand for high-quality, affordable, and sustainable food options.
- Strengthening community engagement: The company remains dedicated to supporting local farmers, suppliers, and sustainability initiatives to create a positive impact in the communities it serves.
Fourth Quarter and Full-Year 2024 Conference Call
Sprouts Farmers Market will host a conference call at 5:00 p.m. Eastern Time on Thursday, February 20, 2025, where company executives will discuss the fourth quarter and full-year 2024 financial results in greater detail.
Webcast Details
A live webcast of the call will be available on Sprouts’ Investor Relations webpage. Participants are encouraged to register on the website approximately ten minutes before the call begins to ensure a smooth experience.
For those unable to attend the live session, a replay of the webcast will be made available at approximately 8:00 p.m. Eastern Time on February 20, 2025.
