On this page of StockholderLetter.com we present the 4/10/2023 shareholder letter from Sprouts Farmers Market, Inc. — ticker symbol SFM. Reading current and past SFM letters to shareholders can bring important insights into the investment thesis.

 •  4/10/2023 Letter Continued (Full PDF)
 •  4/5/2024 SFM Stockholder Letter
 •  4/8/2025 SFM Stockholder Letter
 •  More "Grocery & Drug Stores" Category Stockholder Letters
 •  SFM Benford's Law Stock Score = 73

SFM 4/10/2023 Shareholder/Stockholder Letter Transcript:

To our Shareholders,
Thank you fo
f r your support and ownership of Sprouts through another dynamic year in fo
f od retail. I   m extremely
proud of the way our talented store, distribution center, and support office teams executed our strategy with a
relentless fo
f cus on our customers. The progress the business has made and the financial results we produced are a
testament to their effo
f rts.
I firmly believe the fo
f undation we continued laying in 2022 will position us to deliver sustainable growth and
meaningful returns to shareholders well into the future. Throughout the year we made significant investments in
team member wages, benefits, and training, and we fo
f stered an inclusive company culture. We built more product
innovation capabilities to drive a diffe
f rentiated assortment that resonates with our target customer. We advanced
our fresh supply chain work to improve the customer experience and reduce shrink. We improved customer
communication and connectedness across digital and e-commerce channels. And, importantly,
y we supported the
health of our communities by championing local vendors, reducing waste, fighting hunger, and underwriting
children   s nutrition education programs in underserved areas.
Throughout a year filled with macro challenges, these effo
f rts made our business stronger, more resilient, and more
sustainable. Here are just some of our 2022 successes:
   Annual sales of $6.4 billion and earnings per share of
$2.39, a growth of 14%.
   Cash from operations of $371 million selff funded our 16
new stores.
   Introduced approximately 8400 new fresh, healthy,
y and
attribute-driven products.
   Sprouts Brand products exceeded $1 billion in sales.
   Returned $200 million of value to shareholders through
our share buyback program.
   E-commerce sales grew 11%, supported by our
partnerships with Instacart and the new addition of
DoorDash to reach even more customers.
   Recovered 87% of fo
f od waste and donated the
equivalent of 27 million meals to those in need.
   Created 1,600 new jobs, promoted 24% of our team
members, and delivered more than 682 thousand training
hours.
   Local produce sales grew over 100% to $150 million as
we built key grower relationships and introduced more
unique local items.
   Today,
y we are 51% fe
f male and 48% ethnically diverse
across our stores. Also improved diversity on our board
of directors.
   Aw
A arded a    A
    AA   
A rating by MSCI, a leading ESG
rating organization, and named as one of the 100
most sustainable companies in the world by
Corporate Knights.
   60% of new stores were in our new smaller fo
f rmat
with reduced operational costs, less rent, and more
operational efficiencies.
   Strengthened our fresh supply chain operational
execution and technology stack creating stability and
improved service to our stores, resulting in a fresher
product fo
f r the customer.
   Created value fo
f r our communities by supporting
non-profit-led school gardens and nutrition learning
programs that impacted an estimated 3 million students.
   Built a talented customer analytics team to better
understand our customers    behaviors and digitally
connected with 13% more customers.
    $200M in sales of products from diverse suppliers.
When I look back at all our accomplishments in 2022, what I am most proud of is the way our team members lived
our company Va
V lues every day with intentionality.
y We cared fo
f r each other, our customers, our communities, our
suppliers, and the planet. We celebrated and embraced being diffe
f rent as a business and as individuals. We owned
our areas of responsibility and demonstrated a collective desire to improve the business and drive outcomes. The
dedication and collaboration of our 30,000+ team members make me exceedingly optimistic about the future.
As we begin the new fiscal year, we believe our diffe
f rentiated healthy offe
f ring has never been more relevant. Many
Americans    dietary needs and choices make fo
f r continued trends that fa
f vor our business model. I sometimes must
remind myself that, even though Sprouts opened its first store 20 years ago, we are still in the early chapters of our
growth story.
y I   m excited about the chapters yet to come and am more confident than ever in our ability to deliver
results and do right by all our stakeholders.
Jack Sinclair,
Chief Exe
x cutive
Officer



 4/10/2023 Letter Continued (Full PDF)