A Baltimore celebrated its re-opening four months after being damaged in the riot that followed the death of Freddie Gray
Phoenix-Based Sprouts Farmers Market Releases Strong Financial Report
Sprouts is opening more stores. The health food supermarket chain made the announcement after it released a strong earnings report Thursday.
The specialty food chain had net sales of $622 million in the second quarter of 2013. That’s a 45 percent increase over the same period a year ago when Sprouts started offering common stock for the first time.
“We’re very pleased to have started off our initial offerings as a public company with such strong results. The drivers of our strong performance include new store openings…continued momentum and same store sales and a resulting operating leverage,” said Sprouts CEO Doug Sanders.
F. John Mathis is an economics professor at the Thunderbird Global School of Management in Glendale. He said the company’s net proceeds from the stock offering reached nearly $344 million.
“If you look at the stock price, I think share holders are pretty estatic about the potential of the company. They opened the IPO at 18, and last I saw they were at $37 or $38, so that’s pretty positive,” said Mathis.
Sprouts officials said the company will open almost 40 new stores through 2014. That is after Sprouts acquired Sunflower and Henry’s food markets.
Arizona State University WP Carey School of Business research professor Tim James said Sprouts is strategically expanding as the nation’s economy continues to recover.
“People are now changing their grocery purchasing habits, and I think Sprouts just fits into exactly a particular segment of the market that people want right now which is to go to a health food store which is quite cost conscious in terms of their pricing,” said James.
Sprouts currently operates 160 stores in eight states and has 13,000 employees.