Sprouts Farmers Market Posts Big Quarterly, Yearly Gains
Sprouts Farmers Market – recently named Progressive Grocer’s Retailer of the Year – cemented its solid 2024 with a financial report showing gains across several metrics. As CEO Jack Sinclair put it, “2024 was a remarkable year for our company.”
According to the fourth quarter and full-year report, net sales jumped 18% in the fourth quarter and were up 13% for the year. Comps also climbed double digits, growing 11.4% in Q4 and 7.6% on a year-over-year (YoY) basis. E-commerce sales spiked 37% in the quarter to comprise 14.5% of total sales for that period.
Accordingly, profits went up as the fiscal year closed. Diluted earnings per share hit $0.79 at the end of the quarter, up from $0.49 in the last quarter of 2023. For the year, diluted EPS came in at $3.75 versus $2.50 the prior year.
As it notches sales and earnings gains, Sprouts continues to invest in its operations for future growth. The grocer opened 12 new stores in the fourth quarter, bringing the total new store count for fiscal 2024 to 33.
Sinclair credited staff across the organization for the stellar performance. “Our teams across the business delivered on our strategy and set us up for even greater success in the future,” he said.
In the Feb. 20 earnings call, Sinclair underscored the commitment of employees during times of both expansion and challenge. “I'd like to extend my deepest gratitude to our dedicated team for their tireless efforts during the past few months. Our stores have been dealing with floods in the Carolinas, the Los Angeles wildfires and the unfortunate airplane crash near our Philadelphia store. I want to take this opportunity to thank our team members for supporting one another, the communities we serve and the families devastated by these events,” he declared. He also referenced the distinction of being named Progressive Grocer’s Retailer of the Year.
Looking ahead, the company is optimistic about this year, too. “For 2025, we expect total sales growth to be 10.5% to 12.5% and comp sales in the range of 4.5% to 6.5%. We anticipate comp sales to start the year stronger and moderate as we cycle the higher comps from late 2024,” reported CFO Curtis Valentine in the earning call.
Added Sinclair: “We're excited for 2025 as we build upon that strong foundation, focus on what's working well and forge new capabilities for the future. We've got some exciting initiatives underway and that we believe will further propel our growth and success. These plans include showcasing more innovation in our stores, launching our loyalty program, strengthening our advantage supply chain for fresher products, building exceptional stores that are enjoyable to shop in, and developing a best-in-class team dedicated to serving our customers.”
To his point, Sprouts is testing a marketing campaign called “That Sprouts Feeling” and will roll out a new loyalty program following a pilot test. Shoppers can expect more attribute-based and store brand products on Sprouts shelves, too, and the retailer is enhancing its meat and seafood program by transition to a self-distribution process.
Independently of the retailer’s report, other data shows that Sprouts is in a heathy business position. Foot traffic and location analytics firm Placer.ai found that visits to Sprouts stores increased 7.3% in 2024, with trips to locations up 5% in the quarter.
Phoenix-based Sprouts is considered one of the largest and fastest-growing specialty retailers of fresh, natural and organic food in the United States. It employs approximately 35,000 associates and operates more than 440 stores in 24 states nationwide. The grocer is No. 51 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
