Sprouts Farmers Market (SFM) Trims Q3, FY16 Outlook; Approves $250M Stock Buyback Plan
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Sprouts Farmers Market, Inc. (Nasdaq: SFM) 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.
*** The Street sees FY16 EPS of $0.94 and revenue of $1.05 billion.
“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.
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Create E-mail Alert Related CategoriesCorporate News, Guidance, Hot Corp. News, Hot Guidance, Retail Sales, Stock Buybacks
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