Sprouts Farmers Market Q2 sales edges past estimates on new store openings

Overview

• U.S. specialty grocer's Q2 sales rose 5%, slightly beating analyst expectations

• Q2 diluted EPS rose to $1.37 from $1.35 a year ago

• Company repurchased 0.9 mln shares for $70 mln in Q2

Outlook

• Sprouts sees Q3 comparable store sales between (0.5)% and 1.5%

• Company expects Q3 diluted EPS of $1.20 to $1.24

• Sprouts forecasts full-year net sales growth of 5.5% to 6.5%

Result Drivers

• NEW STORE OPENINGS - Co said strong performance from new stores contributed to Q2 results

• PRODUCT INNOVATION - Continued success of foraging and innovation efforts supported results, per CEO Jack Sinclair

• CAUTIOUS CONSUMER ENVIRONMENT - Co cited a cautious consumer environment as a factor impacting results

Company press release: ID:nBw1tvS6sa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the food retail & distribution peer group is "buy"

• Wall Street's median 12-month price target for Sprouts Farmers Market Inc is $87.00, about 11.9% above its July 28 closing price of $77.77

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• July 29 - Jeronimo Martins misses profit estimates as consumers remain cautious

• July 29 - Singapore's Sheng Siong H1 revenue rises 11.9% on store expansions

• July 29 - Chefs' Warehouse Q2 sales rise 13%, beat estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)