Michael Montani's questions to Sprouts Farmers Market Inc (SFM) leadership • Q3 2024
Question
Michael Montani asked about variations in behavior among different consumer income levels and sought more detail on the Q4 margin outlook and long-term margin potential.
Answer
CEO Jack Sinclair explained that customer behavior correlates more with education level and interest in health than with income, noting a trend toward younger consumers with specific dietary needs. CFO Curtis Valentine stated that Q3's gross margin strength was driven by improved shrink against an easy prior-year compare. He reiterated confidence in a stable bottom-line algorithm long-term, with levers in both gross margin and SG&A to manage performance.