Q2 2024 Sprouts Farmers Market Inc Earnings Call Transcript
Key Points
- Sales grew by 12% compared to the second quarter of 2023, driven by a 6.7% increase in comparable store sales.
- Diluted earnings per share increased by more than 32% from last year's adjusted diluted earnings per share.
- E-commerce sales increased by 30%, representing 14% of total sales for the quarter.
- Gross margin improved to 37.9%, approximately 80 basis points higher than the same period last year.
- Strong cash flow generation enabled the company to self-fund investments and pay down all outstanding revolver debt.
- SG&A expenses increased by 20 basis points compared to the same period last year, primarily due to strategic investments and new store openings.
- Ongoing wage and benefits pressure continue to impact SG&A expenses.
- The challenging development environment and high interest rates have caused some delays in new store openings.
- Despite strong sales, increased e-commerce fees and higher incentive compensation have added pressure to SG&A expenses.
- The company expects continued pressure on SG&A due to new store deleverage and strategic investments.
Thank you for standing by well to Sprouts Farmers Market's second-quarter 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to turn the conference over to Susannah Livingston. Please go ahead.
Thank you, and good afternoon, everyone. Here, please, you are joining Sprouts on our second-quarter 2024 earnings call. Jack Sinclair, Chief Executive Officer; and Curtis Valentine, Chief Financial Officer, are with me today.
The earnings release announcing our second-quarter 2024 results, the webcast of this call, and financial slides can be accessed through the Investor Relations section of our website at investors.sprout.com.
During this call, management may make certain forward-looking statements, including statements regarding our expectations for 2024 and beyond. These statements involve several risks and uncertainties that could cause results to differ materially from those described in
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