Sprouts Farmers Market posted solid second-quarter results, which were announced Thursday.
The Phoenix-based chain saw a 12-percent increase in net sales from the same period in 2017, up to $1.3 billion. Comparable store sales grew 2 percent and two-year comparable store sales grew 3.4 percent.
“Double-digit sales and EPS growth in our second quarter reflects the strength of Sprouts’ differentiated business model and our solid execution across new and existing markets,” says Amin Maredia, chief executive officer of Sprouts Farmers Market. “Our planned 2018 investments in our team members and technology, which increased this quarter, will strengthen our customer service, generate operational efficiencies and support our long-term growth.”
Maredi says the company's strategic priorities — focused on product innovation, customer experience, team members and technology — have proven successful thus far.
Sprouts' Market Corner Deli initiative includes ready-to-eat and ready-to-heat items that have become cornerstones of the program, Maredi says.
"These product innovations, together with our enhancements across the department, are bolstering our sales and adding to our expansion of prepared food and meals," he says. "We continue to test product introductions and merchandising with great success as Sprouts continues to become a destination for health meals-on-the-go."
Sprouts also expanded its home delivery service through a partnership with Instacart and has used investments in technology to enable further cost efficiencies.
"The implementation of fresh item management will improve our ability to have fresh products on the sales floor at all times, while reducing shrink and out of stock," Maredi says. "For our team members, this represents a fundamental change in daily operations and I'm happy to report that they're embracing the change with excitement."
Maredi also says the initial results out of Sprouts' bakery department have been positive and that the company continues to adapt the learnings as it rolls out the system across additional fresh departments. The overall bakery projects is on track to be completed by the end of the 2019 second quarter.