Posted on December 26, 2022
It’s interesting to note that just a few years back Sprouts Farmers Market Inc. (NASDAQ:SFM) was a floundering operation — until they airlifted a former Walmart executive to recook their advertising and marketing efforts.
Sure enough, soon after the eagle landed the company’s stock began to climb.
Until recently, that is.
So what did they do?
They went out and hired a new chief marketing officer.
Two weeks ago, Alisa Gmelich arrived to give SFM shares a renewed goose.
The company hopes to double its store count in coming years, and Alisa’s job is to make sure the market sees that sales and earnings are keeping pace.
It’ll be a tough job, at first, given the inflation and “food scarcity” issues facing the grocery business today. After that, it may get easier, though it’s hard to say.
In our opinion, an expansion strategy in the current economic climate may also be a dastardly difficult undertaking.
SFM is not a fundamentally flawed proposition.
All in all, a less than favorable outlook.
Keep an eye.
And may the G-d of Israel be ever on your lips and in your heart.
With kind regards,
Hugh L. O’Haynew
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