News Details

Sprouts Farmers Market, Inc. Reports Second Quarter 2022 Results

August 3, 2022
Sprouts Achieves Milestone of Celebrating 20th Year Anniversary

PHOENIX, AZ, Aug. 03, 2022 (GLOBE NEWSWIRE) -- Sprouts Farmers Market, Inc. (Nasdaq: SFM) today reported results for the 13-week second quarter ended July 3, 2022.

"The disciplined execution of our long-term strategy, with a sharp focus on near-term initiatives, delivered results that surpassed our expectations during the second quarter," said Jack Sinclair, chief executive officer of Sprouts Farmers Market. "As we celebrate our company's 20th anniversary, I want to express my sincere appreciation to all of our team members for their passion and dedication to our customers."

Second Quarter Highlights:

  • Net sales totaled $1.6 billion; a 5% increase from the same period in 2021. Net sales growth was driven by an increase in comparable store sales and new stores opened
  • Comparable store sales growth of 2.0%
  • Diluted earnings per share of $0.57; compared to diluted earnings per share of $0.52 in the same period in 2021
  • Opened 2 new stores and closed 3 stores due to lease expirations, resulting in 378 stores in 23 states as of July 3, 2022

Leverage and Liquidity in Second Quarter 2022

  • Ended the quarter with $289 million in cash and cash equivalents and a $250 million balance on its $700 million revolving credit facility
  • Repurchased 2.4 million shares of common stock for a total investment of $65 million
  • Generated cash from operations of $209 million and invested $46 million in capital expenditures, net of landlord reimbursement, year-to-date thru July 3, 2022

Third Quarter and Full-Year 2022 Outlook

”We are relatively pleased with our financial performance year to date and continue to be encouraged by another quarter of positive traffic," said Chip Molloy, chief financial officer of Sprouts Farmers Market. “We are cautiously optimistic that we can continue to successfully navigate the remainder of the year during these highly inflationary times while simultaneously pushing forward with our long-term strategy which is supported by our strong cash generation.”

The following provides information on our Full-Year 2022 Outlook:

  • Net sales growth: 4.0% to 5.0%
  • Comparable store sales growth: 1.0% to 2.0%
  • Adjusted diluted earnings per share: $2.18 to $2.26
  • Unit Growth: 15 to 17 new stores
  • Capital Expenditures (net of landlord reimbursements): $130M to $150M

The following provides information on our Third Quarter 2022 Outlook:

  • Comparable store sales growth: 1.0% to 2.0%
  • Adjusted diluted earnings per share: $0.49 to $0.53

Second 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, August 3, 2022, during which Sprouts executives will further discuss second 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 877-344-7529 (toll-free) or412-317-0088 (international) and entering the confirmation code: 7359561.

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. This year, Sprouts celebrates its 20th year anniversary. To learn more about Sprouts, and the good it brings communities, visit




  Thirteen weeks ended     Twenty-six weeks ended  
  July 3, 2022     July 4, 2021     July 3, 2022     July 4, 2021  
Net sales $ 1,595,482     $ 1,521,993     $ 3,236,643     $ 3,097,440  
Cost of sales   1,015,125       971,912       2,044,538       1,961,185  
Gross profit   580,357       550,081       1,192,105       1,136,255  
Selling, general and administrative expenses   462,110       436,420       922,020       876,082  
Depreciation and amortization (exclusive of depreciation included in cost of sales)   31,244       30,430       63,064       61,659  
Store closure and other costs, net   493       (419 )     870       1,629  
Income from operations   86,510       83,650       206,151       196,885  
Interest expense, net   2,658       2,938       5,697       5,929  
Income before income taxes   83,852       80,712       200,454       190,956  
Income tax provision   21,855       19,698       50,150       46,894  
Net income $ 61,997     $ 61,014     $ 150,304     $ 144,062  
Net income per share:                      
Basic $ 0.57     $ 0.52     $ 1.37     $ 1.22  
Diluted $ 0.57     $ 0.52     $ 1.36     $ 1.22  
Weighted average shares outstanding:                      
Basic   109,067       117,246       109,985       117,645  
Diluted   109,619       117,831       110,762       118,265  




  July 3, 2022     January 2, 2022  
Current assets:          
Cash and cash equivalents $ 288,965     $ 245,287  
Accounts receivable, net   13,260       21,574  
Inventories   292,862       265,387  
Prepaid expenses and other current assets   49,520       35,468  
Total current assets   644,607       567,716  
Property and equipment, net of accumulated depreciation   690,460       716,029  
Operating lease assets, net   1,083,183       1,072,019  
Intangible assets, net of accumulated amortization   184,960       184,960  
Goodwill   368,878       368,878  
Other assets   15,236       13,513  
Total assets $ 2,987,324     $ 2,923,115  
Current liabilities:          
Accounts payable $ 173,687     $ 145,901  
Accrued liabilities   138,659       155,996  
Accrued salaries and benefits   48,222       58,743  
Current portion of operating lease liabilities   153,651       151,755  
Current portion of finance lease liabilities   1,130       1,078  
Total current liabilities   515,349       513,473  
Long-term operating lease liabilities   1,101,148       1,095,909  
Long-term debt and finance lease liabilities   259,219       259,656  
Other long-term liabilities   38,253       36,306  
Deferred income tax liability   59,665       57,895  
Total liabilities   1,973,634       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, 107,967,677 shares issued and outstanding, July 3, 2022; 111,114,374 shares issued and outstanding, January 2, 2022   108       111  
Additional paid-in capital   715,331       704,701  
Accumulated other comprehensive income (loss)   193       (3,758 )
Retained earnings   298,058       258,822  
Total stockholders' equity   1,013,690       959,876  
Total liabilities and stockholders' equity $ 2,987,324     $ 2,923,115  




Weeks Ended
Weeks Ended
  July 3, 2022     July 4, 2021  
Operating activities          
Net income $ 150,304     $ 144,062  
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation and amortization expense   64,856       63,152  
Operating lease asset amortization   57,360       52,631  
Store closure and other costs, net   171        
Share-based compensation   7,920       7,851  
Deferred income taxes   1,770       2,920  
Other non-cash items   324       740  
Changes in operating assets and liabilities:          
Accounts receivable   11,389       14,685  
Inventories   (27,475 )     (19,873 )
Prepaid expenses and other current assets   (12,851 )     (13,679 )
Other assets   164       (4,363 )
Accounts payable   32,877       23,653  
Accrued liabilities   (318 )     (8,416 )
Accrued salaries and benefits   (10,521 )     (28,587 )
Operating lease liabilities   (65,502 )     (58,131 )
Other long-term liabilities   (1,505 )     660  
Cash flows from operating activities   208,963       177,305  
Investing activities          
Purchases of property and equipment   (53,098 )     (39,421 )
Cash flows used in investing activities   (53,098 )     (39,421 )
Financing activities          
Payments on finance lease liabilities   (385 )     (333 )
Payments of deferred financing costs   (3,373 )      
Repurchase of common stock   (111,071 )     (87,484 )
Proceeds from exercise of stock options   2,710       1,246  
Cash flows used in financing activities   (112,119 )     (86,571 )
Increase in cash, cash equivalents, and restricted cash   43,746       51,313  
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 $ 290,750     $ 222,754  

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 and twenty-six weeks ended July 3, 2022 and July 4, 2021:


Weeks Ended
Weeks Ended
Weeks Ended
Weeks Ended
  July 3, 2022     July 4, 2021     July 3, 2022     July 4, 2021  
Net income $ 61,997     $ 61,014     $ 150,304     $ 144,062  
Income tax provision   21,855       19,698       50,150       46,894  
Interest expense, net   2,658       2,938       5,697       5,929  
Earnings before interest and taxes (EBIT)   86,510       83,650       206,151       196,885  
Depreciation, amortization and accretion   32,136       31,311       64,856       63,152  
EBITDA $ 118,646     $ 114,961     $ 271,007     $ 260,037  


Source: Sprouts Farmers Market, Inc
Phoenix, AZ

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

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