Sprouts Farmers Market (SFM) reports Q2 2013 results

• The IPO was just 3 weeks ago 

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Sprouts Farmers Market (SFM) reports Q2 adjusted EPS of $0.14, no estimates; Revenue increased 45% y/y to $622.4 mln (SFM) 38.59 +1.37 : Second quarter net sales growth was driven by the Sunflower Transaction, an increase in comparable store sales growth and new store openings. Net sales increased 22% compared to pro forma sales for the same period of 2012, driven by pro forma comparable store sales growth of 10.8% and strong performance in new stores opened. The pro forma comparable store sales growth increase resulted from a balanced rise in traffic and basket size and continued strong performance across departments.


Gross Margin: Gross profit increased 43% to $187.0 million resulting in a gross profit margin of 30.1% of sales, or a decrease of 30 basis points, from the same period in 2012.

New Stores: During second quarter 2013, the Company opened six new stores, four in California and one each in Oklahoma and Texas. An additional five stores have been opened in the third quarter to date bringing 2013 new store openings to 17, for a total of 165 stores in eight states as of Aug. 22, 2013. The Company expects to open two more stores in 2013, bringing total new stores in 2013 to 19.

Guidance: For FY13, company expects 19-21% growth compared to pro forma net sales in FY12; Pro forma comparable store sales growth of 8.5 to 9.0%; Net Income of $44.0 million to $47.0 million; Adjusted diluted earnings per share of $0.41 to $0.43; and Capital expenditures of $70.0 million to $75.0 million, net of landlord reimbursements.