Sprouts Farmers Market(SFM)2024-07-29 20:11Financial Performance - The Company's net sales for the twenty-six weeks ended June 30, 2024, were 3,425.6 million for the same period in 2023, representing a growth of 10.3%[98]. - Net income for the twenty-six weeks ended June 30, 2024, was 143.5 million for the same period in 2023, indicating a year-over-year increase of 46.0%[119]. - Basic net income per share for the twenty-six weeks ended June 30, 2024, was 1.39 for the same period in 2023, reflecting a growth of 49.6%[119]. - Net income for the thirteen weeks ended June 30, 2024, was 67.3 million in the prior year[191]. - Net sales for the thirteen weeks ended June 30, 2024, reached 1,692,247 in the prior year, indicating a growth of approximately 11.9%[164]. - Gross profit for the thirteen weeks ended June 30, 2024, was 92.4 million or 15%, with a gross margin of 37.9%[183]. - Gross profit totaled 164.6 million or 13%, with a gross margin of 38.1% compared to 37.3% in the previous year[224]. Stockholder Equity and Liabilities - For the thirteen weeks ended June 30, 2024, total stockholders' equity increased to 1,148,547 thousand, representing a growth of approximately 10.5% year-over-year[36]. - As of June 30, 2024, total liabilities and stockholders' equity amounted to 3,327,428 thousand as of July 2, 2023, indicating an increase of about 2.5%[36]. - The company had no outstanding loans under the Credit Agreement as of June 30, 2024, after making principal payments of 8,057 thousand as of June 30, 2024, down from 125 million as of June 30, 2024[141]. - The company had no long-term debt outstanding as of June 30, 2024, compared to 600 million share repurchase program, replacing the previous program with 105.2 million, with an average price per share of 7,400 thousand subsequent to June 30, 2024[65]. - The company had 1,080,489 stock awards outstanding as of June 30, 2024, with 5,584,937 shares remaining available for issuance under the 2022 Incentive Plan[100]. - The company granted share-based compensation awards totaling 5,609 in the prior year[160]. Tax and Interest Expenses - The effective tax rate decreased to 23.8% for the twenty-six weeks ended June 30, 2024, compared to 24.0% for the same period in 2023, primarily due to increased excess tax benefits from share-based payment awards[89]. - The effective tax rate increased to 25.2% for the thirteen weeks ended June 30, 2024, compared to 24.7% for the same period in 2023[144]. - Total interest expense, net, decreased by 84% to 4.4 million in the prior year[201]. - Interest expense, net decreased to 4.4 million in the prior year due to lower average debt outstanding[229]. Store Operations - As of June 30, 2024, the company operated 419 stores across 23 states[139]. - The company opened 5 new stores during the thirteen weeks ended June 30, 2024, bringing the total number of stores to 419, up from 391 a year ago[164]. - The company closed 11 underperforming stores in 2023, resulting in a charge of 58.4 million, or 12%, compared to the same period last year, primarily due to the increase in new stores[168]. Cash Flow - Cash flows from operating activities for the twenty-six weeks ended June 30, 2024, were 294,781 for the same period last year[150]. Performance Metrics - Comparable store sales growth was 6.7% for the thirteen weeks ended June 30, 2024, compared to 3.2% for the same period last year, reflecting improved performance[164]. - Comparable store sales growth was 5.4% for the twenty-six weeks ended June 30, 2024, compared to 3.2% in the prior year[223]. - Return on Invested Capital (ROIC) increased to 13.7% for the rolling four quarters ended June 30, 2024, compared to 13.0% for the previous year[208].