Sprouts Farmers Market Stock Falls After Mixed Q2 Results, Lowered FY21 Sales Outlook

  • Sprouts Farmers Market Inc SFM reported a second-quarter FY21 sales decline of 7% year-on-year, to $1.52 billion, missing the analyst consensus of $1.60 billion.
  • Comparable store sales declined (10.0%), and two-year comparable store sales fell (0.6%).
  • Gross profit for the quarter decreased 10.2% to $550 million, and gross profit margin contracted 115 basis points to 36.1%.
  • The operating margin was 5.5%, and operating income for the quarter fell 9.8% to $83.7 million.
  • The company held $220.9 million in cash and equivalents as of July 4, 2021.
  • Cash flow from operating activities for the six months amounted to $177.31 million.
  • Adjusted EBITDA of $114.9 million declined 9.7% Y/Y.
  • Adjusted EPS of $0.52 beat the analyst consensus of $0.45.
  • Outlook: Sprouts Farmers sees FY21 adjusted EPS of $1.90 - $2.02 (prior $1.87 - $2.00), versus the consensus of $1.97.
  • The company expects FY21 sales to decline in the low single digits (prior flat to up slightly). Comparable store sales decline of (5.0%) - (7.0%), versus prior outlook down low to mid-single digits.
  • Price action: SFM shares traded lower by 1.72% at $24.00 in premarket on the last check Friday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!