Sprouts Farmers Market, Inc. reported significant financial growth for the thirteen weeks ended September 29, 2024, with net sales reaching $1,945.7 million, a 14% increase from $1,713.3 million in the same period last year. This growth was driven by an 8.4% increase in comparable store sales, up from 3.9% in the prior year. Gross profit also rose to $740.9 million, an 18% increase compared to $625.4 million, resulting in a gross margin improvement to 38.1% from 36.5%.
The company’s income from operations for the quarter was $122.5 million, up from $87.7 million, while net income surged to $91.6 million, a 40% increase from $65.3 million. Diluted earnings per share increased to $0.91 from $0.64. For the thirty-nine weeks ended September 29, 2024, net income was $301.0 million, compared to $208.8 million in the previous year, reflecting a 44% increase.
Total current assets as of September 29, 2024, were $693.6 million, up from $603.8 million at the end of 2023. The company reported total assets of $3.6 billion, an increase from $3.3 billion. Notably, long-term debt decreased significantly to $7.7 million from $133.7 million, as the company made principal payments of $125 million during the period.
Sprouts Farmers Market continues to expand its footprint, operating 428 stores across 23 states as of September 29, 2024, having opened 63 new stores since 2021. The company focuses on specialty grocery products, emphasizing fresh produce and lifestyle-friendly ingredients.
In terms of strategic developments, the board authorized a new $600 million share repurchase program in May 2024, replacing a previous program with $119.3 million remaining. Subsequent to the reporting period, the company repurchased an additional 0.1 million shares for $5.6 million.
The company also faced challenges, including increased selling, general, and administrative expenses, which rose by 15% due to new store openings and higher incentive compensation costs. However, store closure costs decreased significantly, reflecting the closure of 11 underperforming stores in February 2023, which had previously resulted in a $27.8 million impairment charge.
Overall, Sprouts Farmers Market's financial performance for the recent quarter and year-to-date period demonstrates robust growth, driven by strategic store expansion and improved operational efficiency.
About Sprouts Farmers Market, Inc.
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