uploads///

SFM’s Comps Growth to Remain Muted in Fiscal 2017

By

Apr. 26 2017, Updated 6:05 p.m. ET

What will drive sales in 2017?

Sprouts Farmers Market’s (SFM) management expects deflationary headwinds to continue at least in the first half of 2017. As a result, sales comps are expected decelerate further to the 0%–1% range.

The company aims to open 32 new stores in 2017, which would provide a necessary boost to its top line. Total sales are expected to rise around 12% to 13% in fiscal 2017.

Article continues below advertisement

Sprouts expected to deliver best-in-class results

Wall Street’s estimates are in-line with management estimates of a 12.3% rise in fiscal 2017 sales to $4.5 billion. If the company meets these estimates, it could deliver one of the best performances in the grocery sector.

Supermarket giant Kroger’s (KR) sales are forecasted to rise 4.9% YoY (year-over-year) during the next fiscal year, while organic competitor Whole Foods Market (WFM) is expected to register a 3% YoY jump in its top line.

Analysts predict that SFM’s first quarter sales will grow at the predicted full-year growth pace. The top line is predicted to land at $1.1 billion, up 12.3% YoY. Margins are, however, expected to come under pressure, at least in the first half of the year. Read the next section for a look at the company’s expected profitability in 2017.

Investors looking to invest in SFM through ETFs can choose to invest in the First Trust Consumer Staples AlphaDEX Fund (FXG). SFM makes up approximately 3.2% in FXG.

Advertisement

More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.