Sprouts Farmers Market (SFM) reported earnings on Thur 5 Nov 2015 (before open)

** charts after earnings **

Sprouts Farmers Market (SFM), 1-year performance

The Fresh Market (TFM) plummets after reporting earnings on 21 Nov 2013

According to The Wall Street Journal there are three secondary offerings on tap for next week, but no IPOs. The largest of these, Sprouts Farmers Markets Inc. (NASDAQ: SFM), was supposed to price on Thursday, but that was delayed until Monday likely due to the weak earnings report from The Fresh Market Inc. (NASDAQ: TFM) earlier last week. Sprouts is planning to sell 25.9 million shares. Shares closed at $37.86 on Friday, which would indicate a capital raise of around $975 million.

Shares of specialty food retailer The Fresh Market (TFM) are sinking after the company’s third quarter results and full year guidance fell short of analysts’ consensus estimates.
Last night, The Fresh Market reported Q3 earnings per share of 23c and revenue of $364.5M. Analysts' expectations were for EPS of 26c and revenue of $378.57M. The company reported an increase in same store sales of 3.1%.

WHAT'S NOTABLE: The Fresh Market said it expects FY13 EPS of $1.42-$1.47, compared to the consensus estimate of $1.53. It also forecast FY13 same store sales up 3%-3.5%.
ANALYST REACTION: This morning, research firm Sterne Agee downgraded The Fresh Market to Neutral from Buy following the company's Q3 miss and weak guidance. The firm cited increasing competition and growing pains outside the company’s core market.
PRICE ACTION: In morning trading, The Fresh Market fell more than 19% to $40.80 on more than eight times its average daily trading volume. Year to date, the stock is down almost 15%.

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Sprouts Farmers Market (SFM) reports Q2 2013 results

• The IPO was just 3 weeks ago 

** chart before earnings **

After Hours: 40.05 +1.46 (3.78%)

Sprouts Farmers Market (SFM) reports Q2 adjusted EPS of $0.14, no estimates; Revenue increased 45% y/y to $622.4 mln (SFM) 38.59 +1.37 : Second quarter net sales growth was driven by the Sunflower Transaction, an increase in comparable store sales growth and new store openings. Net sales increased 22% compared to pro forma sales for the same period of 2012, driven by pro forma comparable store sales growth of 10.8% and strong performance in new stores opened. The pro forma comparable store sales growth increase resulted from a balanced rise in traffic and basket size and continued strong performance across departments.


Gross Margin: Gross profit increased 43% to $187.0 million resulting in a gross profit margin of 30.1% of sales, or a decrease of 30 basis points, from the same period in 2012.

New Stores: During second quarter 2013, the Company opened six new stores, four in California and one each in Oklahoma and Texas. An additional five stores have been opened in the third quarter to date bringing 2013 new store openings to 17, for a total of 165 stores in eight states as of Aug. 22, 2013. The Company expects to open two more stores in 2013, bringing total new stores in 2013 to 19.

Guidance: For FY13, company expects 19-21% growth compared to pro forma net sales in FY12; Pro forma comparable store sales growth of 8.5 to 9.0%; Net Income of $44.0 million to $47.0 million; Adjusted diluted earnings per share of $0.41 to $0.43; and Capital expenditures of $70.0 million to $75.0 million, net of landlord reimbursements.

Sprouts Farmers Market (SFM) began trading on the NASDAQ on 1 August 2013

Shares of natural and organic food grocer Sprouts Farmers Market (SFM) on Thursday doubled to $36.52 on their first trading day. The company's initial public offering price of $18 a share raised about $333 million in proceeds and was also above the $14-$16 price that it had expected. Sprouts' larger rival Whole Foods Market (WFM) was flat after it reported a 21% profit jump but disappointing sales. Whole Foods Co-CEO John Mackey said the company continues to gain market share despite growing competition.

This company is sprouting up all over the place. A fast-growing natural foods retailer, Sprouts Farmers Market operates more than 155 stores in Arizona, California, Colorado, Nevada, New Mexico, Oklahoma, Texas, and Utah. The stores (ranging from 23,000 to 37,000 sq. ft.) sell organic and local produce, baked goods, all-natural meats and seafood, imported cheeses, bulk foods, and vitamins and supplements. Stores also boast more than 300 bins of bulk rice, spices, nuts, and grains. In 2012 Sprouts completed a merger with Sunflower Farmers Market, giving Sprouts the #2 spot in the natural organic retail market, behind Whole Foods Market. Apollo Management (APO) holds majority ownership of the combined businesses.

Address

11811 N. Tatum Blvd., Ste. 2400
Phoenix, AZ 85028
USA

Website links  

www.sprouts.com

Apollo-backed Sprouts files for $300m Nasdaq IPO

Apollo Global Management-backed organic grocer Sprouts Farmers Markets has filed to raise $300m in an IPO two years after being bought by the private equity firm.

Sprouts was picked up in February 2011 by Apollo through its Smart & Final subsidiary, and was later merged with Henry’s Farmers Market and Sun Harvest.

Apollo currently owns 51.8 per cent of the business according to the IPO filing with the US Securities and Exchange Commission.

It shows that Goldman Sachs, Credit Suisse are acting as joint bookrunners for the IPO, which shows the company plans to list on the NASDAQ Global Select Market under the SFM ticker.

Sprouts had 157 stories in eight states at the beginning of this month, with pro forma net sales of $2bn for fiscal 2012.

The company sells natural and organic food focusing on health and wellness at affordable prices, including fresh produce and bulk foods, meat and seafood, vitamins, supplements and household items.

Sprouts’ $300m figure is an indicative one used to calculate registration fees. No details were given about expected share price or the number of shares to be sold.