Sprouts Farmers Market, Inc. (NASDAQ:SFM) Q3 2023 Earnings Call Transcript October 31, 2023 10:30 AM ET

Company Participants

Susannah Livingston - IR

Jack Sinclair - CEO

Chip Molloy - CFO

Conference Call Participants

Ken Goldman - JPMorgan Chase

Leah Jordan - Goldman Sachs

Rupesh Parikh - Oppenheimer

Michael Montani - Evercore ISI

Scott Mushkin - R5 Capital

Robbie Ohmes - Bank of America Merrill Lynch

Krisztina Katai - Deutsche Bank

Ben Wood - BMO Capital Markets

Bill Kirk - Roth

Operator

Thank you for standing by. Welcome to the Sprouts Farmers Market Third Quarter 2023 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speakers' presentation there will be a question-and-answer session. [Operator Instructions]. As a reminder, today's program is being recorded.

And now I'd like to introduce your host for today's program, Susannah Livingston, Vice President of Investor Relations and Treasurer. Please go ahead.

Susannah Livingston

Thank you and good morning, everyone. We are pleased you are joining Sprouts on our third quarter 2023 earnings call. Jack Sinclair, Chief Executive Officer; Chip Molloy, Chief Financial Officer; and Curtis Valentine, Senior Vice President of Finance are with me today.

The earnings release announcing our third quarter 2023 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 several 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 morning, everyone. I'm pleased to announce another solid quarter for Sprouts Farmers Market. Our 31,000 team members' commitment to serving our customers, embracing operational excellence and cross-functional teamwork drove comparable store sales growth of 3.9%, total sales growth of 8%, and adjusted earnings per share growth of 7% in the third quarter. Four years ago, we shifted our strategy. We started by defining our target customer segments, health enthusiasts and innovation seekers. Those two segments constituted a $200 billion marketplace in the United States, and we believe we could be the market leader in that space. We then set out to reach more of those customers by providing them with differentiated products and experiences that fulfill their needs and desires.