Sprouts Farmers Market 2014 Annual Report Download - page 50
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Fiscal 2014 Fiscal 2013 Fiscal 2012
Other Operating Data:
Pro forma comparable store sales growth ....... 9.9% 10.7% 9.7%
Stores at beginning of period ................. 167 148 103
Opened ............................... 24 19 9
Acquired .............................. — — 37
Closed ................................ — — (1)
Stores at end of period ...................... 191 167 148
Comparison of Fiscal 2014 to Fiscal 2013
Net sales
Fiscal 2014 Fiscal 2013 Change % Change
(dollars in thousands)
Net sales ............................ $2,967,424 $2,437,911 $529,513 22%
Comparable store sales growth .......... 9.9% 10.7%
Net sales increased during 2014 as compared to 2013, primarily as a result of (i) sales growth at
stores operated prior to 2014 and (iii) new store openings.
Net sales growth at stores operated prior to December 29, 2013 contributed $343.0 million, or 65% of
the increase in net sales for 2014. New store openings during 2014 contributed $186.5 million, or 35%, of
the increase in net sales during 2014.
Cost of sales, buying and occupancy and gross profit
Fiscal 2014 Fiscal 2013 Change % Change
(dollars in thousands)
Net sales .............................. $2,967,424 $2,437,911 $529,513 22%
Cost of sales, buying and occupancy ........ 2,082,221 1,712,644 369,577 22%
Gross profit ............................. 885,203 725,267 159,936 22%
Gross margin ........................... 29.8% 29.7% 0.1%
Cost of sales, buying and occupancy increased during 2014 compared to 2013, primarily due to the
increase in sales from new store openings and comparable store sales growth, as discussed above. Gross
profit increased $157.0 million as a result of increased sales volume and $2.9 million as a result of
increased margin. The 10 basis point increase in gross margin during 2014 was primarily driven by
leverage in occupancy, utilities and buying costs partially offset by lower merchandise margins from higher
inflation in certain categories and increased promotional activities.
Direct store expenses
Fiscal 2014 Fiscal 2013 Change % Change
(dollars in thousands)
Direct store expenses ...................... $581,621 $496,183 $85,438 17%
Percentage of net sales .................... 19.6% 20.4% (0.8)%
Direct store expenses increased $85.4 million, primarily due to a $43.2 million increase for stores
operated prior to 2014. The remaining $42.2 million increase in direct store expenses is associated with
stores opened during 2014. Direct store expenses, as a percentage of net sales, decreased 80 basis
points, primarily due to leverage in payroll, lower utilization of medical benefits, leverage in depreciation
and store level expenses.
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