Sprouts' Sales Grow 10% in 1Q as Productivity Remains Robust; Shares Undervalued
No-moat Sprouts Farmers Market began the year on solid footing, with first-quarter sales growing around 10% (matching our full-year outlook) on a 1.4% lift in comparable-store sales (about 130 basis points below our full-year estimate), primarily driven by the deli, grocery, frozen, and meat categories. However, profitability remains hampered by cost inflation, which caused gross margin to contract 30 basis points to 34.3%. Management attributed this inflation to weather-related cost spikes for ...Sprouts Farmers Market operates as a healthy grocery store. The company categorizes the varieties of products it sells as perishable and non-perishable. Perishable product categories include produce, meat, seafood, deli, bakery, floral and dairy and dairy alternatives. Non-perishable product categories include grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care. The company's stores include the following departments: packaged groceries, meat and seafood, deli, vitamins and supplements, dairy and dairy alternatives, bulk items, baked goods, frozen foods, natural health and body care, and beer and wine.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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