Sprouts Farmers Market Slows Down and Speeds Up in Q2 2019

Sprouts Farmers Market (NASDAQ: SFM) has been a real conundrum for investors. When the stock debuted in 2013, organic and fresh groceries were all the rage -- and they're Sprouts' specialty. But groceries, no matter how fresh and organic, are not a high-growth or high-profit-margin endeavor. Once riding high on optimism, the stock has slowly declined in value for years even as the chain continues to expand and win over consumers.

The trend has continued this year, although investors were pleased with the 2019 second-quarter report card. It was a mixed bag, but there's hope a turnaround could be in store for the fresh grocer.

Sprouts put up more respectable numbers during the second quarter. Top-line growth was up 7% year over year, driven by a robust pipeline of store openings, including stores opened in new markets like Louisiana and New Jersey. At the end of June, there were 331 locations in 21 states, compared with 313 in 19 states at the start of 2019.

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