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Sprouts Farmers Market, Inc. (SFM - Free Report) remains focused on widening its spectrum through product innovation, an efficient supply chain, store unit growth and better customer engagement. A recognized name in the grocery space, the company has been strengthening omnichannel solutions and expanding private-label offerings.
Let’s Introspect
To expand its customer base, Sprouts Farmers has been taking several initiatives focused on product innovation, customer experience and targeted marketing with everyday great pricing and technology. It is steadily expanding its presence in the natural organic space, given the huge demand in the segment. It has been reducing operational complexity, optimizing production, improving the in-stock position and updating to smaller-format stores.
Apart from these, the company is trying to expand private-label offerings in departments under the Sprouts Market Corner Deli and The Butcher Shop at Sprouts. Product innovation continues to drive sales of private-label items.
Image Source: Zacks Investment Research
Sprouts Farmers is focused on creating a robust omnichannel experience for customers. The company has been providing hassle-free shopping through the Sprouts.com website and the mobile app and creating a supply chain that provides the freshest produce while updating store prototypes. Sprouts Farmers is gradually heading toward its strategic goal of 10% unit growth per year. It currently intends to open 30 new stores in 2023.
Sprouts Farmers’ partnership with Instacart and DoorDash enables it to enter new marketplaces and strengthen e-commerce growth. It has rolled out the grocery pickup service at all its stores. The home delivery business is also available at the company’s stores. In the first quarter of 2023, e-commerce sales grew in the double digits and represented 12.2% of total sales in the quarter.
Wrapping Up
Sprouts Farmers, being laser-focused, has been redefining strategies and upgrading capabilities to stay ahead of the curve. For 2023, Sprouts Farmers expects net sales growth of 5-6% and comparable store sales growth of 2-3%. It foresees full-year adjusted earnings in the band of $2.58-$2.68 per share, up from the $2.39 reported in 2022.
This Zacks Rank #3 (Hold) stock has outpaced the Zacks Food-Natural Foods Products industry in the year-to-date period. In the said period, shares of the company have increased about 4.7%, while the industry has risen 3.3%.
The Zacks Consensus Estimate for Kroger’s current financial-year revenues and EPS suggests growth of 2.6% and 6.9%, respectively, from the year-ago reported figure. Kroger has a trailing four-quarter earnings surprise of 9.8%, on average.
TJX Companies, which operates as an off-price apparel and home fashion retailer, carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 10.5%.
The Zacks Consensus Estimate for TJX Companies’ current financial-year sales and earnings suggests growth of 6.4% and 14.5% from the year-ago period. TJX has a trailing four-quarter earnings surprise of 4.4%, on average.
Walmart, which operates a chain of hypermarkets, discount department stores and grocery stores, currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 5.5%.
The Zacks Consensus Estimate for Walmart’s current financial-year sales suggests growth of 4.2% from the year-ago period. WMT has a trailing four-quarter earnings surprise of 12%, on average.
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Sprouts Farmers' (SFM) Product Innovation, Stores Drive Growth
Sprouts Farmers Market, Inc. (SFM - Free Report) remains focused on widening its spectrum through product innovation, an efficient supply chain, store unit growth and better customer engagement. A recognized name in the grocery space, the company has been strengthening omnichannel solutions and expanding private-label offerings.
Let’s Introspect
To expand its customer base, Sprouts Farmers has been taking several initiatives focused on product innovation, customer experience and targeted marketing with everyday great pricing and technology. It is steadily expanding its presence in the natural organic space, given the huge demand in the segment. It has been reducing operational complexity, optimizing production, improving the in-stock position and updating to smaller-format stores.
Apart from these, the company is trying to expand private-label offerings in departments under the Sprouts Market Corner Deli and The Butcher Shop at Sprouts. Product innovation continues to drive sales of private-label items.
Image Source: Zacks Investment Research
Sprouts Farmers is focused on creating a robust omnichannel experience for customers. The company has been providing hassle-free shopping through the Sprouts.com website and the mobile app and creating a supply chain that provides the freshest produce while updating store prototypes. Sprouts Farmers is gradually heading toward its strategic goal of 10% unit growth per year. It currently intends to open 30 new stores in 2023.
Sprouts Farmers’ partnership with Instacart and DoorDash enables it to enter new marketplaces and strengthen e-commerce growth. It has rolled out the grocery pickup service at all its stores. The home delivery business is also available at the company’s stores. In the first quarter of 2023, e-commerce sales grew in the double digits and represented 12.2% of total sales in the quarter.
Wrapping Up
Sprouts Farmers, being laser-focused, has been redefining strategies and upgrading capabilities to stay ahead of the curve. For 2023, Sprouts Farmers expects net sales growth of 5-6% and comparable store sales growth of 2-3%. It foresees full-year adjusted earnings in the band of $2.58-$2.68 per share, up from the $2.39 reported in 2022.
This Zacks Rank #3 (Hold) stock has outpaced the Zacks Food-Natural Foods Products industry in the year-to-date period. In the said period, shares of the company have increased about 4.7%, while the industry has risen 3.3%.
Stocks Looking Red Hot
Here we have highlighted three better-ranked stocks, namely Kroger (KR - Free Report) , The TJX Companies (TJX - Free Report) and Walmart (WMT - Free Report) .
Kroger, a supermarket operator, currently carries a Zacks Rank #2 (Buy). The expected EPS growth rate for three to five years is 6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Kroger’s current financial-year revenues and EPS suggests growth of 2.6% and 6.9%, respectively, from the year-ago reported figure. Kroger has a trailing four-quarter earnings surprise of 9.8%, on average.
TJX Companies, which operates as an off-price apparel and home fashion retailer, carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 10.5%.
The Zacks Consensus Estimate for TJX Companies’ current financial-year sales and earnings suggests growth of 6.4% and 14.5% from the year-ago period. TJX has a trailing four-quarter earnings surprise of 4.4%, on average.
Walmart, which operates a chain of hypermarkets, discount department stores and grocery stores, currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 5.5%.
The Zacks Consensus Estimate for Walmart’s current financial-year sales suggests growth of 4.2% from the year-ago period. WMT has a trailing four-quarter earnings surprise of 12%, on average.