Sprouts Farmers Market (SFM -1.91%), a specialty grocer known for its focus on natural and organic products, released its fourth-quarter earnings results on Feb. 20, 2025. The company reported impressive results that exceeded analysts' expectations. EPS was $0.79, beating estimates of $0.73, while revenue reached $2.0 billion, outpacing the expected $1.96 billion. Strong growth in comparable store sales and strategic store expansions contributed to the performance, painting a positive picture for the quarter.
| Metric | Q4 2024 | Q4 Estimate | Q4 2023 | Y/Y Change |
|---|---|---|---|---|
| EPS | $0.79 | $0.73 | $0.49 | +61.2% |
| Revenue | $2.0B | $1.96B | $1.70B | +18.0% |
| Comparable Store Sales Growth | 11.5% | N/A | N/A | N/A |
Source: Analyst estimates for the quarter provided by FactSet.
About Sprouts Farmers Market
Sprouts Farmers Market is a grocery chain specializing in natural and organic foods. It emphasizes unique products and wellness-oriented groceries. The company targets locations with concentrations of health-conscious consumers.
Recent initiatives include widespread market expansion and an increasing focus on sustainability and customer engagement. Operating 440 stores across 24 states, Sprouts has consistently augmented its product selection to stay ahead in a competitive market landscape.
Quarterly Highlights
The fourth quarter of 2024 was a period of notable achievements for Sprouts. Revenue increased by 18% from the previous year's $1.7 billion to $2.0 billion, bolstered by an impressive 11.5% growth in comparable store sales.
The company's EPS of $0.79 significantly surpassed the prior year's $0.49. These gains were attributed to strategic new store openings, with 12 added in the quarter.
Sprouts also expanded its product line, launching approximately 7,100 new items, which contributed to diversified revenue streams. The Sprouts brand, a key revenue driver, accounted for more than 23% of total sales, underscoring its importance.
Financial highlights include a robust net income of $79.6 million, up from $50 million in Q4 2023. Gross profit margins also improved from 36.5% to 38.1%, indicating better cost management.
Outlook and Future Plans
Looking ahead, Sprouts projects strong growth for the first quarter 2025, aiming for 10% to 11% increase in comparable store sales and an EPS between $1.51 to $1.55 for Q1 2025. Full-year expectations include a net sales rise of 10.5% to 12.5% and continued robust EBITDA forecasts between $590 million to $610 million.
