Sprouts Farmers Market Stock In Focus After Q4 Earnings Beat: Retail Mood Brightens

Shares of Sprouts Farmers Market Inc. (SFM) were in the spotlight on Thursday as the grocery chain operator posted a fourth-quarter earnings beat, lifting retail sentiment.

The grocery chain’s net sales came in at $2.0 billion, an 18% increase from the same period in 2023. Diluted earnings per share stood at $0.79, beating expectations of $0.73.

Its Q4 comparable store sales growth stood at 11.5%, according to a company statement. The company also opened 12 new stores.

“2024 was a remarkable year for our company,” said Jack Sinclair, CEO of Sprouts Farmers Market. “Our teams across the business delivered on our strategy and set us up for even greater success in the future.”

For first quarter 2025, the company expects comparable store sales growth between 10% and 11%. Adjusted diluted earnings per share are expected between $1.51 to $1.55, above the consensus estimate of $1.31.

For 2025, net sales growth is projected between 10.5% to 12.5%; while comparable store sales growth is estimated at 4.5% to 6.5%. FY25 EPS is expected between $4.52-$4.68, above the consensus estimates of $4.27.

Retail sentiment on Stocktwits improved to ‘bullish’ from ‘neutral’ a week ago. Message volume climbed to ‘extremely high’ from ‘high.’

One commenter was optimistic about the company’s prospects over the next several years.

In 2024, the company also authorized a new $600 million share buyback program and repurchased 2.7 million shares of common stock for a total investment of $238 million, excluding excise tax.

In 2024, the company opened 33 new stores, for a total of 440 stores in 24 states as of December 29, 2024.

Sprouts Farmers stock is up 33.6% year-to-date.

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