Sprouts Farmers Market 2015 Annual Report Download - page 51

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43
Comparison of Fiscal 2015 to Fiscal 2014
Net sales
Fiscal 2015 Fiscal 2014 Change % Change
(dollars in thousands)
Net sales ......................................................... $3,593,031 $2,967,424 $625,607 21%
Comparable store sales growth ...................... 5.8%9.9%
Net sales increased during 2015 as compared to 2014, primarily as a result of (i) sales growth at
stores operated prior to 2015, (ii) new store openings and (iii) the 53rd week included in 2015.
Net sales growth at stores operated prior to December 28, 2014 contributed $376.2 million, or 60%
of the increase in net sales for 2015. New store openings during 2015 contributed $249.4 million, or 40%,
of the increase in net sales during 2014. Included in those increases were a total of $68.1 million of net
sales attributable to the 53rd week in 2015.
Cost of sales, buying and occupancy and gross profit
Fiscal 2015 Fiscal 2014 Change % Change
(dollars in thousands)
Net sales .................................................... $3,593,031 $2,967,424 $625,607 21%
Cost of sales, buying and occupancy ........ 2,541,403 2,082,221 459,182 22%
Gross profit ................................................ 1,051,628 885,203 166,425 19%
Gross margin ............................................. 29.3%29.8%(0.5)%
Cost of sales, buying and occupancy increased during 2015 compared to 2014, primarily due to the
increase in sales from comparable store sales growth, new store openings and the 53rd week in 2015.
Gross profit increased $186.6 million as a result of increased sales volume, offset by a decrease of $20.2
million related to decreased margin. The gross margin decrease was primarily driven by continued price
investments in certain categories and produce tightness due to adverse weather conditions and West
Coast port strikes that limited product availability, compared to a very strong produce season in the prior
year. The impact of the 53rd week on gross margin was insignificant.
Direct store expenses
Fiscal 2015 Fiscal 2014 Change % Change
(dollars in thousands)
Direct store expenses..................................... $706,044 $581,621 $124,423 21%
Percentage of net sales................................... 19.7%19.6%0.1%
Direct store expenses increased $124.4 million, due to a $64.1 million increase in direct store
expenses associated with stores operated prior to 2015 and $60.3 million of direct store expenses related
to stores opened during 2015. Included in that increase was approximately $12.7 million of direct store
expenses attributable to the 53rd week in 2015. Direct store expenses, as a percentage of net sales, was
relatively flat year over year. Lower bonus expense was offset by increased training and by higher payroll
costs due to an extra holiday in the year. The impact of the 53rd week on direct store expenses was
insignificant.