Sprouts Farmers Market, Inc. · NASDAQ:SFM
Sprouts Farmers Market — Q2 2023 Earnings Presentation
10 slides from Sprouts Farmers Market's earnings presentation, Aug 1, 2023
Slide 1: Q2 2023 Earnings
Q2 2023 Earnings August 2023 Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein (including, but not limited to, statements to the effect that Sprouts Farmers Market, Inc. (the “Company”) or its
Slide 3: Second Quarter 2023 Highlights
Second Quarter 2023 Highlights Net Sales +6% Comps (1) +3.2% Adj. diluted EPS(2) $0.71 EPS Growth (3) 25% New Store Openings 6 Share Repurchases $50M Comparable Store Sales See the Appendix to this presentation for a reconciliation of diluted EPS to Adjusted diluted EPS Reflects comparison of Q2 23
Slide 4: YTD 2023 Highlights
YTD 2023 Highlights Net Sales +6% New Store Openings 14 Cash Generation YTD $295M From Operations Share Repurchases $148M
Slide 5: Second Quarter Sales Drivers
Second Quarter Sales Drivers Encouraged by positive traffic trends Differentiated departments (e.g., Grocery, Dairy, Proteins, Bakery) experienced year-over-year growth Ecommerce grew double digits, from the same quarter last year
Slide 6: Maintaining a Structurally Improved Margin Profile
Maintaining a Structurally Improved Margin Profile 6 See the Appendix to this presentation for a reconciliation of EBIT to adjusted EBIT. For Q2’2021 & Q2’2022, adjustments to EBIT were immaterial; thus, only EBIT is presented. ($ in mm) ADJUSTED EBIT & Adjusted EBIT Margin(1)
Slide 7: Driving Shareholder Value Through An Ongoing Share Repurchase Program
From 2015 through Q2 2023: Repurchased 62 million shares Reduced shares outstanding by 40% $264M remaining on our share repurchase authorization* Total Share Repurchase Driving Shareholder Value Through An Ongoing Share Repurchase Program ($ in mm) * As of July 2, 2023
Slide 8: Full-Year 2023 Outlook
Full-Year 2023 Outlook Approximately 30 new stores Capex $190M to $210M Third Quarter, 2023: Comp sales growth approximately low single digits and Adjusted diluted EPS $0.59 to $0.63 Total sales growth of 5% to 6% Comp sales growth of 2% to 3% Adjusted earnings before interest & taxes $378M to $390M
Slide 9: Appendix
Appendix
Slide 10: Non-GAAP Measure Reconciliation
SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES NON-GAAP MEASURE RECONCILIATION (UNAUDITED) (IN THOUSANDS) The following table shows a reconciliation of adjusted gross margin to gross margin, EBIT and adjusted EBIT to net income, adjusted EBIT margin to EBIT margin, as well as a reconciliation of net
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