Sprouts Farmers Market, Inc. Updates Third Quarter and Full-Year 2016 Guidance; Announces $250 Million Share Repurchase Autho...
September 07 2016 - 06:55AM
Sprouts Farmers Market, Inc. (Nasdaq:SFM) today announced updated
guidance in advance of participation in the Goldman Sachs
23rd Annual Global Retailing Conference on September 8, 2016.
This update reflects the impact of significant ongoing deflation,
the stepped-up promotional environment and our cautious outlook for
the remainder of the year. Comparable store sales growth for the
third quarter ending October 2, 2016 is now expected to be
approximately flat. The prolonged deflationary environment,
competitive landscape and industry dynamics have prompted heavy
promotions across the industry, adversely impacting retail
deflation and traffic generation. Given the current environment, we
are adjusting our full-year 2016 comparable store sales growth to
be in the range of 1.5% to 2.5% and earnings per share to be in the
range of $0.83 to $0.86.
“At Sprouts, we have operated and managed through similar
competitive and deflationary periods,” said Amin Maredia, chief
executive officer of Sprouts Farmers Market. Our team remains
laser focused on accelerating traffic and sales in the current
environment, while continuing to execute our strategic business
plan to build long-term value.”
Share Repurchase Authorization
On September 6, 2016, our Board of Directors authorized a $250
million common stock share repurchase program. The company had
completed its previous $150 million share repurchase authorization
during its second fiscal quarter ended July 3, 2016 and currently
has approximately 148.5 million shares of common stock
outstanding. The $250 million authorization represents
approximately 7.4% of common shares outstanding at the current
stock price. The shares may be purchased on a
discretionary basis from time to time through December 31, 2017,
subject to general business and market conditions and other
investment opportunities, through open market purchases, privately
negotiated transactions or other means, including through Rule
10b5-1 trading plans. The repurchase program may be commenced,
suspended or discontinued at any time.
Important Information Regarding
Outlook
There is no guarantee that Sprouts will achieve its projected
financial expectations, which are based on management estimates,
currently available information and assumptions that management
believes to be reasonable. These expectations are
inherently subject to significant economic, competitive and other
uncertainties and contingencies, many of which are beyond the
control of management. See “Forward-Looking Statements”
below.
Forward-Looking Statements
Certain statements in this press release are forward-looking as
defined in the Private Securities Litigation Reform Act of 1995.
Any statements contained herein that are not statements of
historical fact (including, but not limited to, statements to the
effect that Sprouts Farmers Market or its management "anticipates,"
"plans," "estimates," "expects," or "believes," or the negative of
these terms and other similar expressions) should be considered
forward-looking statements, including, without limitation,
statements regarding the company’s guidance and outlook for 2016
and purchases under the share repurchase program. These statements
involve certain risks and uncertainties that may cause actual
results to differ materially from expectations as of the date of
this release. These risks and uncertainties include, without
limitation, risks associated with the company’s ability to
successfully compete in its intensely competitive industry; the
company’s ability to successfully open new stores; the company’s
ability to manage its rapid growth; the company’s ability to
maintain or improve its operating margins; the company’s ability to
identify and react to trends in consumer preferences; product
supply disruptions; general economic conditions; and other factors
as set forth from time to time in the company’s Securities and
Exchange Commission filings, including, without limitation, the
company’s Annual Report on Form 10-K. The company intends
these forward-looking statements to speak only as of the time of
this release and does not undertake to update or revise them as
more information becomes available, except as required by law.
Corporate Profile
Sprouts Farmers Market, Inc. is a healthy grocery store offering
fresh, natural and organic foods at great prices. Sprouts offer a
complete shopping experience that includes fresh produce, bulk
foods, vitamins and supplements, packaged groceries, meat and
seafood, deli, baked goods, dairy products, frozen foods, natural
body care and household items catering to consumers’ growing
interest in health and wellness. Headquartered in Phoenix, Arizona,
Sprouts employs more than 23,000 team members and operates more
than 240 stores in thirteen states from coast to coast. For more
information, visit www.sprouts.com or @sproutsfm on Twitter.
Investor Contact:
Susannah Livingston
(602) 682-1584
susannahlivingston@sprouts.com
Media Contact:
Donna Egan
(602) 682-3152
donnaegan@sprouts.com
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