Sprouts Posts Sales, Profit Gains in Q2

Sprouts Farmers Market posted net sales of $743.8 million for its second quarter ended June 29, 2014, a 20 percent increase from the year-ago period.

The company attributed its strong growth to new stores opened, as well as a 9.5 percent jump in comparable-store sales.

Meanwhile, gross profit for Q2 increased 20 percent to $224 million, which drove a gross profit margin of 30.1 percent of sales. Net income for the quarter was $30.2 million, or diluted earnings per share of $0.20, up $17.7 million from the same period in 2013.

Doug Sanders, president/CEO, noted the Phoenix-based grocer's strong sales growth and earnings improvement, adding that the "positive reception reinforces the broad appeal of our healthy, value-focused model and demonstrates our ability to deliver on our growth strategy."

For its fiscal year-to-date, Sprouts netted sales of $1.5 billion, a 23 percent increase over the year-ago, driven by an 11.1 percent increase in comps. The grocer brought in net income of $63.9 million for the year, up $33.3 million from the same time in 2013.

Sprouts' strong performance was buoyed by six new stores opened in Q2 –- two in Nevada, and one each in Arizona, California, Colorado and Georgia. The company has opened five additional stores so far in Q3, including a second store in Atlanta, bringing its current store total to 182 in 10 states.