Sprouts Farmers Market Announces $300 Million Share Repurchase Authorization

Rhea-AI Summary

Sprouts Farmers Market (SFM) announced a new $300 million share repurchase program on March 3, 2021, reflecting its commitment to enhancing shareholder value and strong cash flow generation. The repurchase may occur in various forms, such as open market purchases and is valid for three years. CFO Denise Paulonis emphasized the Board's confidence in the company's growth strategy and performance. This initiative underlines Sprouts' focus on driving shareholder returns while continuing to invest in long-term growth opportunities.

Positive

• Authorization of a $300 million share repurchase program to enhance shareholder value.
• Repurchase program reflects strong cash flow generation and commitment to investors.
• Demonstrates Board's confidence in the company's future growth strategy.

Negative

• None.

PHOENIX, March 04, 2021 (GLOBE NEWSWIRE) -- Sprouts Farmers Market, Inc. (Nasdaq: SFM) announced today that its Board of Directors authorized a new share repurchase program on March 3, 2021 of $300 million of its common shares. The shares may be purchased on a discretionary basis from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases, privately negotiated transactions or other means, including through Rule 10b5-1 trading plans. The repurchase program may be commenced, suspended or discontinued at any time and expires in three years.

“Our new share repurchase program reflects our commitment to strong cash flow generation and driving shareholder return, while at the same time deploying capital to drive growth over the long term,” said Denise Paulonis, Chief Financial Officer. “This repurchase program demonstrates the Board's confidence in our future and the company’s strategy.”

Forward-Looking Statements

Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact (including, but not limited to, statements to the effect that Sprouts Farmers Market or its management "anticipates," "plans," "estimates," "expects," or "believes," or the negative of these terms and other similar expressions) should be considered forward-looking statements, including, without limitation, statements regarding the company’s outlook, growth, opportunities and long-term strategy. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this release. These risks and uncertainties include, without limitation, risks associated with the impact of the COVID-19 pandemic; the company’s ability to execute on its long-term strategy; the company’s ability to successfully compete in its competitive industry; the company’s ability to successfully open new stores; the company’s ability to manage its growth; the company’s ability to maintain or improve its operating margins; the company’s ability to identify and react to trends in consumer preferences; product supply disruptions; general economic conditions; accounting standard changes; and other factors as set forth from time to time in the company’s Securities and Exchange Commission filings, including, without limitation, the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The company intends these forward-looking statements to speak only as of the time of this release and does not undertake to update or revise them as more information becomes available, except as required by law.

Corporate Profile

Sprouts is the place where goodness grows. True to its farm-stand heritage, Sprouts offers a unique grocery experience featuring an open layout with fresh produce at the heart of the store. Sprouts inspires wellness naturally with a carefully curated assortment of better-for-you products paired with purpose-driven people. The healthy grocer continues to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. Headquartered in Phoenix, and one of the fastest growing retailers in the country, Sprouts employs approximately 35,000 team members and operates more than 360 stores in 23 states nationwide. To learn more about Sprouts, and the good it brings communities, visit about.sprouts.com.

Investor Contact:	Media Contact:
Susannah Livingston	Diego Romero
(602) 682-1584	(602) 682-3173
susannahlivingston@sprouts.com	media@sprouts.com

 

FAQ

What is the purpose of Sprouts Farmers Market's new share repurchase program (SFM)?

The $300 million share repurchase program aims to enhance shareholder value while allowing Sprouts to continue investing in long-term growth.

When was the share repurchase program for SFM authorized?

The share repurchase program was authorized on March 3, 2021.

How long will the share repurchase program for SFM last?

The repurchase program will be valid for three years.

How does the share repurchase program impact SFM's stock price?

The repurchase program may positively impact SFM's stock price by reducing the number of outstanding shares, potentially increasing earnings per share.