Why Sprouts Farmers Market Stock Was Climbing Today

Shares of Sprouts Farmers Market (NASDAQ: SFM) were climbing today after the natural-foods-focused grocery chain posted better-than-expected results in its fourth-quarter earnings report. Comparable sales rose 3.7%, driving overall revenue up 17% to $1.6 billion in the 14-week quarter, which edged out expectations of $1.58 billion. Profits also soared during the quarter with gross margin expanding from 34.3% to 36.7%, benefiting from lapping promotional activities in the quarter a year ago, initiatives to reduce inventory loss, and gains in leverage from the increase in comparable sales.