Sprouts Farmers Market's Q1 Report Looked Bad. Here's Why Investors Shouldn't Be Concerned

The onset of the COVID-19 pandemic last spring was a boon to the grocery store industry. As consumers rushed to stock their pantries ahead of potential food shortages and mandated lockdowns, the industry saw a huge rise in sales. However, this has also led to tough year-over-year comparisons as companies release their first-quarter 2021 results.

Sprouts Farmers Market (NASDAQ: SFM), a healthy foods grocery chain headquartered in Arizona, is no exception to this trend. The company just reported first-quarter earnings and the top-line numbers have troubled some investors. But first glances can be deceiving.

Here's how Sprouts Farmers Market performed in the first quarter, why its Q1 headline numbers looked bad, and why investors shouldn't be concerned.

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Source Fool.com