$SFM Dropping down to earth
Recently one of my larger positions Sprouts Farmers Market reported earnings. It was certainly a mixed bag with an EPS Beat, Revenue growth but missing expectations, and a warning from the CFO.
Decent earnings for the slow-growing grocery chain were hampered when the CFO had this to say about rising inflation.
While I am still confident that $SFM can manage to deal with inflation I do think the company will suffer quite a bit in the short term. Still long.
I thought inflation would be good for grocery retailers because they benefit from setting higher prices.