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Sprouts Farmers Market reported healthy performance for its second fiscal quarter of 2016, with an increase in both net and same-store sales.
Sprouts' net sales rose 14 percent, reaching $1 billion vs. the same period in 2015, alongside a 4 percent increase in comparable store sales and solid performance in new stores which propelled growth.
Additionally, Sprouts reported net income of $37 million, 19 percent up from the same period in 2015. The Phoenix-based retailer attributed the increases to higher sales margins, lower interest expense due to a voluntary pay-down on Sprouts’ revolving credit facility, and fewer shares outstanding due to its repurchase program.
“Sprouts’ healthy living for less business continues to resonate with customers as we grow coast to coast,” said Amin Maredia, Sprouts CEO. “Despite the deflationary environment, our team continues to produce solid comparable store sales growth through improved traffic of 3.5 percent and increased tonnage. We remain laser-focused on our strategic priorities to drive performance today while continuing to invest in team members, technology and infrastructure for sustainable long-term growth.”
Sprouts plans to open 36 new stores by the end of the year, representing a 17 percent increase in total store count.
Sprouts Farmers Market Inc. employs more than 23,000 associates and operates more than 240 stores in 13 states.