On this page of StockholderLetter.com we present the 4/5/2024 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.
2023 ANNUAL REPORT
To our Shareholders, I couldn t be prouder of the fantastic results our store, distribution center, and support office team members delivered in 2023. Their work has cemented Sprouts as the leading specialty food retailer centered on differentiation, health, community, and sustainability. Strong execution of our strategic initiatives has further reinforced our foundation and set the table for sustainable long-term growth and meaningful returns to shareholders. We continue to be intentional about providing a differentiated assortment of innovative lifestylefriendly products and a shopping experience our target customers can t find anywhere else. In addition to delivering strong financial and operational results during the year, we also supported our local communities. Some of the highlights include: Annual sales of $6.8 billion bolstered by 3.4% comparable store sales growth, representing annual sales growth of 7%. Increased our fresh supply chain to support our long-term growth and improve freshness of our produce offering. More than 70% of our sales are from attribute-driven products. Built the team and technological foundation to introduce the first iteration of our new loyalty program in 2024. Achieved our highest-ever customer service scores. Sprouts Brand products reached 20% sales penetration. E-commerce grew to 12% of sales, meeting our customers wherever they are. Returned $203 million of value to shareholders through our share buyback program. All new stores were in our new smaller format with reduced operational costs, less rent, and more efficiencies. Donated the equivalent of 29 million meals to those in need. Created approximately 3,000 new jobs and promoted 20% of our team members Maintained a AAA rating by MSCI, a leading ESG rating organization. Supported school gardens and nutrition education programming across the country that impacted an estimated three million students. These accomplishments were driven by our passionate, talented team members that care deeply about helping people live and eat better. And while these results are worth celebrating, we are laser focused on executing in 2024 and beyond. As I look ahead, we will continue to invest and evolve to deliver on an unrivaled experience for our target customers. We plan to drive even more innovation in Sprouts Brand and across the store, win more loyalty from our target customers, strengthen and improve our advantaged supply chain, develop a best-in-class team across the business and build exceptional stores. I couldn t be more excited about what the future holds for our company. Thank you for your continued support and ownership of Sprouts. Jack Sinclair, Chief Executive Officer
 • shareholder letter icon 4/5/2024 Letter Continued (Full PDF)
 • stockholder letter icon 4/10/2023 SFM Stockholder Letter
 • stockholder letter icon 4/8/2025 SFM Stockholder Letter
 • stockholder letter icon More "Grocery & Drug Stores" Category Stockholder Letters
 • Benford's Law Stocks icon SFM Benford's Law Stock Score = 73


SFM 4/5/2024 Shareholder/Stockholder Letter Transcript:

2023
ANNUAL REPORT

To our Shareholders,
I couldn   t be prouder of the fantastic results our store, distribution center, and support office team
members delivered in 2023. Their work has cemented Sprouts as the leading specialty food retailer
centered on differentiation, health, community, and sustainability. Strong execution of our strategic
initiatives has further reinforced our foundation and set the table for sustainable long-term growth and
meaningful returns to shareholders.
We continue to be intentional about providing a differentiated assortment of innovative lifestylefriendly products and a shopping experience our target customers can   t find anywhere else. In addition
to delivering strong financial and operational results during the year, we also supported our local
communities. Some of the highlights include:
    Annual sales of $6.8 billion bolstered
by 3.4% comparable store sales growth,
representing annual sales growth of 7%.
    Increased our fresh supply chain to
support our long-term growth and improve
freshness of our produce offering.
    More than 70% of our sales are from
attribute-driven products.
    Built the team and technological foundation
to introduce the first iteration of our new
loyalty program in 2024.
    Achieved our highest-ever customer service
scores.
    Sprouts Brand products reached 20% sales
penetration.
    E-commerce grew to 12% of sales, meeting
our customers wherever they are.
    Returned $203 million of value to
shareholders through our share buyback
program.
    All new stores were in our new smaller
format with reduced operational costs, less
rent, and more efficiencies.
    Donated the equivalent of 29 million meals
to those in need.
    Created approximately 3,000 new jobs and
promoted 20% of our team members
    Maintained a    AAA    rating by MSCI, a
leading ESG rating organization.
    Supported school gardens and nutrition
education programming across the country
that impacted an estimated three million
students.
These accomplishments were driven by our passionate, talented team members that care deeply about
helping people live and eat better. And while these results are worth celebrating, we are laser focused
on executing in 2024 and beyond. As I look ahead, we will continue to invest and evolve to deliver on an
unrivaled experience for our target customers. We plan to drive even more innovation in Sprouts Brand
and across the store, win more loyalty from our target customers, strengthen and improve our advantaged
supply chain, develop a best-in-class team across the business and build exceptional stores. I couldn   t be
more excited about what the future holds for our company.
Thank you for your continued support and ownership of Sprouts.
Jack Sinclair,
Chief Executive
Officer



shareholder letter icon 4/5/2024 Letter Continued (Full PDF)
 

SFM Stockholder/Shareholder Letter (Sprouts Farmers Market, Inc.) 4/5/2024 | www.StockholderLetter.com
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