Sprouts Farmers Market, Inc. (NASDAQ:SFM) Q1 2023 Earnings Conference Call May 1, 2023 5:00 PM ET

Company Participants

Susannah Livingston - Vice President, Investor Relations and Treasurer

Jack Sinclair - Chief Executive Officer

Chip Molloy - Chief Financial Officer

Conference Call Participants

Mark Carden - UBS

Ken Goldman - JPMorgan

Edward Kelly - Wells Fargo

Michael Montani - Evercore

Rupesh Parikh - Oppenheimer

Krisztina Katai - Deutsche Bank

Leah Jordan - Goldman Sachs

Karen Short - Credit Suisse

Chuck Cerankosky - Northcoast Research

Robbie Ohmes - Bank of America

Kelly Bania - BMO Capital Markets

Operator

Good afternoon and thank you for standing by. Welcome to the First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]

Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Susannah Livingston, Vice President, Investor Relations and Treasurer. Please go ahead.

Susannah Livingston

Thank you, and good afternoon, everyone. We are pleased you are taking the time to join Sprouts on our first quarter 2023 earnings call. Jack Sinclair, Chief Executive Officer; and Chip Molloy, Chief Financial Officer are with me today.

The earnings release announcing our first quarter 2020 results, the webcast of this call and quarterly slides can be accessed through the Investor Relations section of our website at investors.sprouts.com.

During this call, management may make certain forward-looking statements including statements regarding our expectations for 2023 and beyond. These statements involve sepal risks and uncertainties that could cause results to differ materially from those described in the forward-looking statements. For more information, please refer to the risk factors discussed in our SEC filings and the commentary on forward-looking statements at the end of our earnings release.

Our remarks today include references to non-GAAP measures. Please see the tables in our earnings release to reconcile our non-GAAP measures to the comparable GAAP figures.

With that, let me hand it over to Jack.

Jack Sinclair

Thanks, Susannah, and good afternoon, everyone. I want to begin our call by thanking our 31,000 team members for their continued dedication in creating a best-in-class experience for our customers seeking fresh, high quality and healthy foods.

We are pleased with our first quarter. We believe our long-term growth strategy is gaining traction and driving positive performance. Our results included comparable store sales growth of 3.1% and total sales growth of 6% and adjusted diluted earnings per share growth of 24%. Our traffic trends are improving and our newer stores on average are exceeding our internal expectations.