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Sprouts Farmers Market Announces New Executive Chairman, CEO, President, and Interim CFO

Sprouts Farmers Market Announces New Executive Chairman, CEO, President, and Interim CFO

Monday, August 10th, 2015

Sprouts Farmers Market reported its latest financial results for the second quarter of 2015 following news of its recent executive shakeup. 

Sprouts' new leadership team according to its succession plan is as follows, effective August 6.

  • Amin Maredia, Chief Financial Officer, will be appointed as Chief Executive Officer.
  • Jim Nielsen, Chief Operating Officer, will continue his role as COO and assume the position of President as well.
  • Doug Sanders, former President and CEO, has been appointed as Executive Chairman of the Board.
  • Susannah Livingston, Vice President of Investor Relations and Treasury, will serve as Interim CFO until a replacement has been found.

In a press release, Sanders discussed his gratitude for being part of the Sprouts team since the beginning and thanked the company’s Board of Directors.

Doug Sanders, Executive Chairman of the Board, Sprouts Farmers Market“I strongly believe Sprouts has the team, foundation, and strategy in place to achieve long-term success, and I am excited to continue to be part of the strategic direction of Sprouts serving as Executive Chairman of the Board,” he said.

Speaking on his predecessor, Maredia said that he looks forward to working closely with Doug, the Board of Directors, the company’s leadership team, and more than 20,000 team members to continue the organization’s success in the years ahead.

Amin Maredia, CEO, Sprouts Farmers Market“There has never been a more exciting time for our company as consumers’ expectations of grocery stores continue to evolve,” said Maredia. “…I know we will continue to be nimble, innovative and customer-focused to deliver on our mission of ‘Healthy Living for Less.’”

Sprouts saw a 21 percent increase in net sales from the same period last year, topping $902 million for the quarter. This was driven primarily by strong performance of new stores, as well as comparable store sales growth of 5.1 percent.

Sprouts Farmers Market

Doug Sanders, the former President & CEO, and now, Executive Chairman of the Board, discussed these recent results in a conference call with investors. He explained that the company continues to make solid progress into 2015 with a strategic focus on broadening its appeal to everyday grocery shoppers across age groups and demographics.

Sanders also discussed expanded deli offerings into four additional stores this quarter, including features such as a new salad bar, prepared proteins, healthy side dishes, and an improved assortment of pantry meals and side dishes. Sanders said that Sprouts plans to roll out these offerings into more stores in 2016 and beyond.  

Deli, Sanders said, is a leading comp driver for Sprouts, and he hopes that the company will continue to see improvements as it rolls out these new offerings. 

Sprouts Farmers Market

As for Sprouts’ plans for expansion, Sanders said during the conference call that the company will continue to focus on growth in existing markets to offset the investment in its new market expansion strategy.

“We see this as an effective long term strategy for several reasons,” he said. “One, new stores in existing markets open with higher productivity and achieve expected returns much more quickly than new stores and new markets. Two, we’re able to gain leverage in existing distribution, advertising, and supervision cost which increases the overall profitability of the market. And three, we’re able to expand both our market share and brand recognition with a greater number of stores in the trade area.”

Over the course of the second quarter, Sprouts opened eight new stores, one each in Alabama, Arizona, California, Colorado, Georgia, Oklahoma, Missouri, and its first store in Tennessee. To date, four additional stores have opened in the third quarter, for a grand total of 22 new stores opened in 2015. The company said in its report that it is still on track to open 27 stores this year

“I continue to be very optimistic about the future of our company and the tremendous growth still in front of us,” said Sanders.

Other highlights from Sprouts’ Q2 2015 include:

  • Net income of $31.3 million and diluted EPS of $0.20
  • Adjusted net income of $35.0 million; a 16% increase from the same period in 2014
  • Adjusted diluted EPS of $0.22; a 10% increase from the same period in 2014
  • Adjusted EBITDA of $77.6 million; a 12% increase from the same period in 2014
  • New $450 million revolving credit facility; $160 million outstanding after $100 million voluntary pay down

Stay tuned for more on Sprouts Farmers Market as we follow the company’s financial performance into Q3 2015 and beyond.

Sprouts Farmers Market

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At Sprouts, we believe healthy living is a journey and every meal is a choice. We love to inspire, educate and empower every person to eat healthier and live a better life. This isn't just a...