News Details

Sprouts Farmers Market, Inc. Reports First Quarter 2022 Results

May 4, 2022

PHOENIX, May 04, 2022 (GLOBE NEWSWIRE) -- Sprouts Farmers Market, Inc. (Nasdaq: SFM) today reported results for the 13-week first quarter ended April 3, 2022.

"We are encouraged with the strong start to the year,” said Jack Sinclair, chief executive officer of Sprouts Farmers Market. "We delivered top line growth, supported by both positive comps and traffic, while simultaneously maintaining our gross margin discipline. The commitment, passion and dedication of Sprouts ~31,000 team members to one another, our customers and communities were key to our success. We look forward to continuing to engage our communities with innovative, healthy products in convenient smaller format stores, shaping our brand as a destination specialty grocer."

First Quarter Highlights:

  • Net sales totaled $1.6 billion; a 4% increase from the same period in 2021. Net sales growth was driven by positive increase in comparable store sales and new stores opened
  • Comparable store sales growth of 1.6%
  • Diluted earnings per share of $0.79; compared to diluted earnings per share a of $0.70 in the same period in 2021
  • Opened 6 new stores and closed one, resulting in 379 stores in 23 states as of April 3, 2022

Leverage and Liquidity in First Quarter 2022

  • Generated cash from operations of $153 million
  • Invested $22 million in capital expenditures net of landlord reimbursement, primarily for new stores
  • Authorized a new $600 million share repurchase program and repurchased 1.5 million shares of common stock for a total investment of $46 million
  • Entered into a new $700 million credit facility with revised pricing and the addition of ESG-linked pricing terms
  • Ended the quarter with $324 million in cash and cash equivalents


“While we are pleased with our first quarter performance, inflation is not slowing and customers are continuing to put a few less items in their baskets,” said Chip Molloy, chief financial officer of Sprouts Farmers Market. “Despite transaction comp continuing to be positive, given the level of uncertainty in the marketplace, we believe it is prudent to assume a more conservative approach to our outlook."

"For the full year, we now expect total sales growth, comparable store sales growth and earnings per share to be at the low end of the outlook provided during our last earnings release. We still expect to open between 15-20 new stores. For the second quarter of 2022, we expect comparable stores sales growth to be relatively flat and diluted earnings per share of $0.49 to $0.53.”

First Quarter 2022 Conference Call

Sprouts will hold a conference call at 2 p.m. Pacific Daylight Time (5 p.m. Eastern Daylight Time) on Wednesday, May 4, 2022, during which Sprouts executives will further discuss first quarter 2022 financial results.

A webcast of the conference call will be available through Sprouts’ investor relations webpage located at Participants should register on the website approximately ten minutes prior to the start of the webcast.

The audio replay will remain available for 72 hours and can be accessed by dialing 855-859-2056 (toll-free) or 404-537-3406 (international) and entering the confirmation code: 8684439.

Important Information Regarding Outlook

There is no guarantee that Sprouts will achieve its projected financial expectations, which are based on management estimates, currently available information and assumptions that management believes to be reasonable. These expectations are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management. See “Forward-Looking Statements” below.

Forward-Looking Statements

Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact (including, but not limited to, statements to the effect that Sprouts Farmers Market or its management "anticipates," "plans," "estimates," "expects," or "believes," or the negative of these terms and other similar expressions) should be considered forward-looking statements, including, without limitation, statements regarding the company’s outlook, growth, opportunities and long-term strategy. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this release. These risks and uncertainties include, without limitation, the company’s ability to execute on its long-term strategy; the company’s ability to successfully compete in its competitive industry; the company’s ability to successfully open new stores; the company’s ability to manage its growth; the company’s ability to maintain or improve its operating margins; the company’s ability to identify and react to trends in consumer preferences; product supply disruptions; equipment supply disruptions; general economic conditions that impact consumer spending or result in competitive responses; accounting standard changes; the impact of the COVID-19 pandemic; and other factors as set forth from time to time in the company’s Securities and Exchange Commission filings, including, without limitation, the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The company intends these forward-looking statements to speak only as of the time of this release and does not undertake to update or revise them as more information becomes available, except as required by law.

Corporate Profile

Sprouts is the place where goodness grows. True to its farm-stand heritage, Sprouts offers a unique grocery experience featuring an open layout with fresh produce at the heart of the store. Sprouts inspires wellness naturally with a carefully curated assortment of better-for-you products paired with purpose-driven people. The healthy grocer continues to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. Headquartered in Phoenix, and one of the largest and fastest growing specialty retailers of fresh, natural and organic food in the United States, Sprouts employs approximately 31,000 team members and operates approximately 380 stores in 23 states nationwide. To learn more about Sprouts, and the good it brings communities, visit


    Thirteen weeks ended  
    April 3, 2022     April 4, 2021  
Net sales   $ 1,641,161     $ 1,575,447  
Cost of sales     1,029,413       989,273  
Gross profit     611,748       586,174  
Selling, general and administrative expenses     459,910       439,662  
Depreciation and amortization (exclusive
   of depreciation included in cost of
    31,820       31,229  
Store closure and other costs, net     377       2,048  
Income from operations     119,641       113,235  
Interest expense, net     3,039       2,991  
Income before income taxes     116,602       110,244  
Income tax provision     28,295       27,196  
Net income   $ 88,307     $ 83,048  
Net income per share:            
Basic   $ 0.80     $ 0.70  
Diluted   $ 0.79     $ 0.70  
Weighted average shares outstanding:            
Basic     110,903       118,044  
Diluted     111,833       118,607  


    April 3, 2022     January 2, 2022  
Current assets:            
Cash and cash equivalents   $ 324,301     $ 245,287  
Accounts receivable, net     13,675       21,574  
Inventories     272,178       265,387  
Prepaid expenses and other current assets     30,556       35,468  
Total current assets     640,710       567,716  
Property and equipment, net of accumulated depreciation     701,102       716,029  
Operating lease assets, net     1,086,008       1,072,019  
Intangible assets, net of accumulated amortization     184,960       184,960  
Goodwill     368,878       368,878  
Other assets     16,096       13,513  
Total assets   $ 2,997,754     $ 2,923,115  
Current liabilities:            
Accounts payable   $ 165,703     $ 145,901  
Accrued liabilities     143,462       155,996  
Accrued salaries and benefits     44,637       58,743  
Accrued income tax     15,275        
Current portion of operating lease liabilities     153,500       151,755  
Current portion of finance lease liabilities     1,116       1,078  
Total current liabilities     523,693       513,473  
Long-term operating lease liabilities     1,106,716       1,095,909  
Long-term debt and finance lease liabilities     259,442       259,656  
Other long-term liabilities     35,743       36,306  
Deferred income tax liability     60,186       57,895  
Total liabilities     1,985,780       1,963,239  
Commitments and contingencies            
Stockholders' equity:            
Undesignated preferred stock; $0.001 par value; 10,000,000 shares
authorized, no shares issued and outstanding
Common stock, $0.001 par value; 200,000,000 shares authorized,
   110,243,288 shares issued and outstanding, April 3, 2022;
   111,114,374 shares issued and outstanding, January 2, 2022
    110       111  
Additional paid-in capital     711,712       704,701  
Accumulated other comprehensive loss     (1,263 )     (3,758 )
Retained earnings     301,415       258,822  
Total stockholders' equity     1,011,974       959,876  
Total liabilities and stockholders' equity   $ 2,997,754     $ 2,923,115  


Weeks Ended
Weeks Ended
    April 3, 2022     April 4, 2021  
Operating activities            
Net income   $ 88,307     $ 83,048  
Adjustments to reconcile net income to net cash provided by operating activities:            
Depreciation and amortization expense     32,720       31,841  
Operating lease asset amortization     28,043       25,816  
Store closure and other costs, net     171        
Share-based compensation     4,456       3,613  
Deferred income taxes     2,291       2,757  
Other non-cash items     313       207  
Changes in operating assets and liabilities:            
Accounts receivable     9,770       8,795  
Inventories     (6,790 )     (16,733 )
Prepaid expenses and other current assets     3,613       (7,747 )
Other assets     1,757       (1,078 )
Accounts payable     27,645       27,004  
Accrued liabilities     (6,857 )     (10,568 )
Accrued salaries and benefits     (14,106 )     (32,959 )
Accrued income tax     15,275       16,251  
Operating lease liabilities     (32,180 )     (28,719 )
Other long-term liabilities     (1,399 )     3,910  
Cash flows from operating activities     153,029       105,438  
Investing activities            
Purchases of property and equipment     (27,227 )     (16,605 )
Cash flows used in investing activities     (27,227 )     (16,605 )
Financing activities            
Payments on finance lease liabilities
    (176 )     (163 )
Payments of deferred financing costs     (3,373 )      
Repurchase of common stock     (45,715 )     (3,209 )
Proceeds from exercise of stock options     2,555       881  
Cash flows used in financing activities     (46,709 )     (2,491 )
Increase in cash, cash equivalents, and restricted cash     79,093       86,342  
Cash, cash equivalents, and restricted cash at beginning of the period     247,004       171,441  
Cash, cash equivalents, and restricted cash at the end of the period   $ 326,097     $ 257,783  

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with accounting principles generally accepted in the United States (“GAAP”), the company presents EBITDA and EBIT. These measures are not in accordance with, and are not intended as alternatives to, GAAP. The company's management believes that this presentation provides useful information to management, analysts and investors regarding certain additional financial and business trends relating to its results of operations and financial condition. In addition, management uses these measures for reviewing the financial results of the company, and certain of these measures may be used as components of incentive compensation.

The company defines EBITDA as net income before interest expense, provision for income tax, and depreciation, amortization and accretion.

Non-GAAP measures are intended to provide additional information only and do not have any standard meanings prescribed by GAAP. Use of these terms may differ from similar measures reported by other companies. Because of their limitations, non-GAAP measures should not be considered as a measure of discretionary cash available to use to reinvest in the growth of the company’s business, or as a measure of cash that will be available to meet the company’s obligations. Each non-GAAP measure has its limitations as an analytical tool, and they should not be considered in isolation or as a substitute for analysis of the company’s results as reported under GAAP.

The following table shows a reconciliation of EBITDA to net income for the thirteen weeks ended April 3, 2022 and April 4, 2021:


Weeks Ended
Weeks Ended
    April 3, 2022     April 4, 2021  
Net income   $ 88,307     $ 83,048  
Income tax provision     28,295       27,196  
Interest expense, net     3,039       2,991  
Earnings before interest and taxes (EBIT)     119,641       113,235  
Depreciation, amortization and accretion     32,720       31,841  
EBITDA   $ 152,361     $ 145,076  


Investor Contact: Media Contact:  
Susannah Livingston  
(602) 682-1584    


Source: Sprouts Farmers Market, Inc
Phoenix, AZ


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Source: SFM, LLC d/b/a Sprouts Farmers Market