Q3 2024 Sprouts Farmers Market Inc Earnings Call Transcript
Key Points
- Sprouts Farmers Market Inc (SFM) reported a 14% increase in total sales compared to the third quarter of 2023, with an 8.4% rise in comparable store sales.
- Diluted earnings per share grew by 40% from the previous year, indicating strong financial performance.
- E-commerce sales increased by 36%, representing 14.5% of total sales, showing significant growth in online shopping.
- The company opened nine new stores during the third quarter, ending with 428 stores across 23 states, and has a robust pipeline of nearly 110 approved new stores.
- Sprouts Farmers Market Inc (SFM) has a strong balance sheet, generating $520 million in operating cash flow, allowing for self-funded investments and share repurchases.
- SG&A expenses increased by $79 million, resulting in approximately 50 basis points of deleverage compared to the previous year.
- Store closures and related costs totaled approximately $4 million for the quarter, impacting overall financial performance.
- The company faced challenges with higher incentive compensation and increased e-commerce fees, contributing to SG&A deleverage.
- Two planned store openings in Florida were delayed until the first quarter of 2025 due to the impact of Hurricane Milton.
- Despite strong performance, the company acknowledges ongoing macroeconomic challenges and the need for continuous operational improvements.
Good day, and thank you for standing by. Welcome to the Sprouts Farmers Market third-quarter 2024 earnings conference call. (Operator Instructions)
I will not attend the conference over to your speaker today, Susannah Livingston. Please go ahead.
Thank you and good afternoon everyone. We are pleased you are joining Sprouts on our third quarter, 2024 earnings call, Jack Sinclair, Chief Executive Officer and Curtis Valentine, Chief Financial Officer are with me today. The earnings release announcing our third quarter, 2024 results. The webcast of this call and financial slides can be accessed through our investor relations section of our website at investors dot sprouts dotcom. 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 the forward
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