Sprouts grows sales, names chief merchant
Sprout Farmers Market reported earnings and sales growth on the same day that it named a new chief merchandising officer.
The company said Dave McGlinchey has been named Chief Merchandising Officer, a new executive team role. The company said that the role was created to advance Sprouts’ commitment to leadership in the fresh, natural and organic industry.
In its second quarter fiscal report, Sprouts said net income rose to $41.7 million, or 32 cents a share, from $41 million, or 29 cents a share, in the same period a year ago. Same store sales during the period ended July 1 rose 2%. Revenue increased to $1.32 billion from $1.18 billion.
“Double-digit sales and EPS growth in our second quarter reflects the strength of Sprouts’ differentiated business model and our solid execution across new and existing markets,” said Amin Maredia, chief executive officer of Sprouts Farmers Market. “Our planned 2018 investments in our team members and technology, which increased this quarter, will strengthen our customer service, generate operational efficiencies and support our long-term growth.”
Sprouts opened its 300th store in June (it now has 305 stores as of July 1) as the company continues with its bold growth plans. The retailer's 300th store is located in Simpsonville, S.C., the healthy grocer’s first store in the state, helping meet the growing local demand for fresh, natural and organic products at lower prices. The retailer has also been adding click and collect, as well as online ordering to its store experience.
“As Sprouts continues to expand from coast to coast, we’re pleased with our guests’ response to our unique combination of health and value,” said Sprouts’ Chief Development Officer Ted Frumkin. “We’re looking forward to celebrating the opening of the 300th Sprouts with our new neighbors in Simpsonville.”
New head merchant McGlinchey had been serving as Sprouts’ Senior Vice President of Merchandising Services since 2017 and will be reporting to Jim Nielsen, Sprouts’ President and Chief Operating Officer.
McGlinchey brings more than 20 years of grocery merchandising and leadership experience to Sprouts in both mass and conventional grocery. Before joining Sprouts, he was senior vice president of merchandising and marketing for Shaw’s and Star Market in the northeast area of the country. Earlier, he served in a number of leadership roles over a 14-year span at Stop & Shop/Giant Food, including Senior Vice President of Merchandising Support and Vice President of Grocery Merchandising.
“Dave’s experience and passion for delivering consistent, coordinated and sustainable merchandising strategies across all categories will continue to position Sprouts as a driving force for making innovative natural and organic brands affordable and accessible for everyone,” said Nielsen.
The company affirmed its 2018 sales growth outlook of 10.5% to 11.5%, while bumping up its EPS outlook to $1.24 to $1.28 from $1.22 to $1.28.