Sprouts Farmers Market (SFM), a healthy grocery store in the U.S, is soaring in pre-market trading after facing the decline in yesterday’s trading. As of 4:13 AM EST, the price per share was recorded to $22.23 with an 8.33% gain. Let’s see what the reason behind this bullish sentiment is.
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The shares of SFM started to climb in the extended hours after the company reported its fourth quarter and fiscal year results on the 25th of February, 2021. SFM produced $1.6 billion in net sales in the fourth quarter with a 17% surge over the year. Adjusted net income soared by a whopping 119% year over year to $70 million. Diluted EPS and adjusted diluted EPS increased to $0.58 and $0.59 respectively as compared to diluted and adjusted diluted EPS of $0.29 from the same period in 2019.
As far as fiscal year results are concerned, the company posted $6.5 billion net sales recording a 15% increase from 2019. The net income and adjusted net income soared to $287 million and $294 million respectively with a 96% increase in adjusted net income as compared to $150 million recorded in 2019. Diluted EPS and adjusted diluted EPS jumped to $2.43 and $2.49 respectively from $1.25 in 2019.
Thanks to COVID 19 due to which the SFM recorded 340% growth in its eCommerce sales. The company paid record bonuses to its frontline team members and opened 22 new stores.
COVID 19 has changed the whole business structure as many offline businesses converted to online. The pandemic greatly contributed to the rise of the eCommerce business that’s why companies like SFM recorded breathtaking profits. Considering the current situation SFM is now in a good position to grow further in the future so investors should keep an eye on this stock.