SFM - Sprouts Farmers Market Inc. (SFM) Q1 2024 Earnings Call Transcript

2024-05-01 21:46:02 ET

Sprouts Farmers Market, Inc. (SFM)

Q1 2024 Earnings Conference Call

May 01, 2024 05:00 PM ET

Company Participants

Susannah Livingston - Vice President of Investor Relations and Treasurer

Jack Sinclair - Chief Executive Officer

Curtis Valentine - Chief Financial Officer

Conference Call Participants

Leah Jordan - Goldman Sachs

Mark Carden - UBS

Michael Montani - Evercore ISI

John Heinbockel - Guggenheim Securities

Rupesh Parikh - Oppenheimer

Scott Mushkin - R5 Capital

Robert Ohmes - Bank of America

Kelly Bania - BMO Capital Markets

Chuck Cerankosky - Northcoast Research

Robert Dickerson - Jefferies

Jessica Taylor - Deutsche Bank

Evan Ketterhagen - Wells Fargo

Presentation

Operator

Good day, and thank you for standing by. Welcome to the First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker, Susannah Livingston, Vice President, Investor Relations and Treasurer. Please begin.

Susannah Livingston

Thank you, and good afternoon, everyone. We are pleased you are joining Sprouts on our first quarter 2024 earnings call. Jack Sinclair, Chief Executive Officer; and Curtis Valentine, Chief Financial Officer are with me today. The earnings release announcing our first quarter 2024 results, the webcast of this call and financial slides can be accessed through the Investor Relations section of our website at investors.sprouts.com.

During this call, management may make certain forward-looking statements, including statements regarding our expectations for 2024 and beyond. These statements involve several risks and uncertainties that could cause results to differ materially from those described in the forward-looking statements. For more information, please refer to the risk factors discussed in our SEC filings and the commentary on forward-looking statements at the end of our earnings release. Our remarks today include references to non-GAAP measures. Please see the tables in our earnings release to reconcile our non-GAAP measures to the comparable GAAP figures.

With that, let me hand it over to Jack.

Jack Sinclair

Thanks, Susannah and good afternoon, everyone. I want to start by thanking our 42,000 hardworking team members, who worked together to create a great experience for our customers, which in turn delivered impressive financial results. Our sales have grown by 9% with comparable store sales growing by 4% and diluted earnings per share growing by 14%, compared to adjusted diluted earnings per share in the same period last year.

These positive results reflect the effectiveness of our strategy and the exceptional execution by our team. It has been a strong start to the year and we're encouraged by the continued momentum in our business. Our entire approach across the business remains centered around our target customer. We've aligned our merchandising, marketing, operations, new store design and supply chain strategies to provide the freshest most innovative attribute driven products in the marketplace.

We've also created a unique and easy to shop format with great service. During the first quarter, we organized Sprouts brand and organic events, which were highly successful. These events and others led to positive customer traffic growth in the first quarter. We are pleased to bring Sprouts to more communities across the country. The new store program continues to gather pace. We opened seven for the quarter and are on track for the year, And we're committed to helping our customer live and eat better with every new store opening across the country....

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