COVID-fueled cycling since a year ago, Sprouts Farmer’s Market cut sales and revenue in the first quarter of fiscal 2021, but topped Wall Street’s one-share plans.
For the quarter ended April 4, net sales were down 4.3% to $ 1.58 billion, from $ 1.65 billion in the previous year, according to sprouts. The Phoenix-based specialty retailer helped boost solid performance sales of new stores, offsetting a 9.4% drop in comparable-store sales that have appeared since COVID-19 launched a year ago.
In the first quarter of 2020, sprouts made double-digit gains in both net sales (+16%) and gum-store sales (+ 10.6%), driven by consumer stock behavior as the corona virus began to spread across the country.
In the first quarter of fiscal year 2021, net income was $ 83 million or 70 cents per diluted stock, compared to $ 91.8 million or diluted 78 cents per share in the previous year. Sprouts noted that diluted earnings per share in 2020 represent a 22 percent benefit from the impact of COVID-19.
According to Jax Investment Research, analysts forecast, on average, a 62-cent adjusted EPS of sprouts in the first quarter of 2021.
“Since the COVID outbreak began last year, I am very pleased with how we have led the current environment. Combining our strong financial performance with the strategic opportunities ahead of me gives me great confidence in the future of sprouts. This is an increase of 52% from the first quarter of 2019 because our strategic efforts and promotions continue to provide strong, sustainable financial results without shrinking, ”Jack Sinclair, CEO of Sprouts, told a conference call late on Thursday.
“I believe 2020 was a turning point for sprouts, and we continue to build on that success and momentum this year. We expand our mission through. ”
Returning to the first quarter of 2019 provides a more accurate picture of the latest quarterly performance of sprouts, said Chief Financial Officer Denise Paulonis.
“Our year-over-year comparison is not a direct sign of growth. We believe it is important to focus on our performance on a two-year basis,” Paulonis said in the call. 2.2%. After posting positive comps to start the quarter, the same store sales will turn negative as 2020 begins to cycle the impact of COVID and reopen. Importantly, at the end of the first quarter and the current quarter, we saw a return to positive traffic. ”
The brightest spots in the quarter included sales of tele, bakery and e-commerce, with the latter increasing by 221% year-over-year, according to Paulonis.
“During the quarter, e-commerce sales were up 12.5%, reflecting a significant increase in January as the country witnessed an increase in COVID cases, stabilizing back to our fourth quarter 2020 levels by March,” he said. “The work done last year to create a complete ubiquitous experience by expanding the pickup space for each store is clear, and the addition of shop.sprouts.com continues to be consistent with our customers.”
Sinclair says the private label continues to expand. “At Grocery, the team continues to push our innovation pipeline forward, resulting in more than 400 new products available in the first quarter, with more to come this year,” he said. “Many of these new products are the result of our strategic work in 2020 to better serve our target customers. Throughout this year, we will be bringing more new products to create that ‘treasure hunting’ shopping experience, and these new products will be available at our innovation centers in our new stores, We will highlight our ‘Find a new favorite’ under the sales footage. ”
This epidemic has led many Americans to focus on their health and well-being, and sprouts are well established to take advantage of that trend because it expands and enhances the best offerings for you, Sinclair noted.
“2020 was an important year, not only for sprouts, but for Americans in general, and we all tried to stay healthy. When we start a new year, the same focus on health is on the mind. For sprouts, it plays well on who we are – a new, natural and organic specialty. Retailer: New products have always been at the forefront of sprouts, and it continues to be at the heart of our proposal, representing 22% of our business, ”he explained.
“In addition, what sets us apart from other grocers is the breadth of character-based products we carry. Characteristic trends such as keto, paleo, organic, plant-based, gluten-free and functional are all health-centric and play directly with our target customers, ”Sinclair said. “By 2020, our organic sales were up 21% to $ 1.4 billion, and in production, organic sales were up 23%, driven by the desire for healthy food. Is a fundamental part of the strategy and our goal is something that the customer wants. ”
Helping Sprouts Spread the Message of the Healthy Eating Proposal is an extension of its store base. Although the chain did not open any new locations in the first quarter, it aims to open 20 new stores by 2021, including five new small space locations. Ten of the new stores will be in Florida. Spruts added 22 new stores by 2020, ending the year with 362 locations in 23 states.
“Although we have 362 stores across the country, we are lagging behind in terms of brand recognition. Our awareness is very low. In 2021, this will change,” Sinclair said. “Our benefit growing campaign launched late last year with the first trip to TV and many digital media outlets. Starting this year, with our five new design stores, brand changes will begin to come alive in p assets. Ultimately, they will be reflected by the common design principle in our product offerings and sprouts will complete the entire umbrella of the brand. ”
Sprouts improve proximity in its distribution chain. In March, the company opened a 135,000-square-foot production distribution center in Colora Aurora – representing its sixth DC – planned for another Florida.
“The opening went well and we now offer all our stores in the Colorado, Utah and New Mexico region, which is a testament to the strength of the team. Sinclair said, “In addition, they allow us to serve more stores and customers with new products, benefit from room ripening and support local farmers.”