Sprouts reported Q4 results showed sales up +18%, comp-sales up +11.5%, and gross margin up +160 bps. The sales increase was well ahead of Advan’s +15.4% estimate* (+/- 130 bps T4Q Moe, 96% T8Q correlation) although Advan’s estimate did correctly forecast a beat vs consensus**. E-commerce grew at a much stronger +37% rate, which added 300bps to the comp growth; additionally, a larger basket size contributed to comp-growth. Those two led to the outperformance versus our estimate.

Walmart U.S. Q4 results showed sales up +5.0%, comp-sales up +4.6%, and operating margin up +12 bps. The sales increase was ahead of Advan’s +4.3% estimate* (+/- 90 bps T4Q Moe, 55% T8Q correlation). Excluding e-commerce, curbside, store delivery, and marketplace, comp-sales increased +1.7%. Excluding the average ticket increase of +1.8% implies a slight comp-traffic increase for the period, right in line with Advan’s +0.6% estimate. (Management did say in-store comp transactions were positive.

Ahold reported a stronger set of figures for Q4. Per Advan Research, traffic is even better 2025-to-date, including for its Stop & Shop, as shown in the chart below. The improvement is on both a 1-year and 2-year basis for all Ahold brands. On its results, management noted that volumes for the U.S. business had finally turned positive and that consumers were responding to its price investments in the market (i.

SiteOne’s business and results are interesting these days as they provide a read on the results of immigration policy on industries heavily dependent on immigrants, extreme weather and natural disasters, commodity inflation, and housing. The latter three of these were impactful to SiteOne’s Q4 as one can see in the chart below, obviously especially for Florida. The pick up following the hurricanes was quite abrupt and one would expect those orders to be larger which may be behind SiteOne’s daily volume increase of +4.

Differentiation was the key to growth in sales and market share in food retail in 2024 – a challenging year for conventional retailer offerings. As shown above, Whole Foods enjoyed robust comp-traffic all year long, and the traffic aligns with its reported sales growth rate of mid-single-digits-plus, with a Q4 increase of +8%. (Mid-February comp-traffic is +7% on a T4W basis.) In our observations at their locations, the success stems from leveraging the Amazon relationship, sharper value on its offering, and solid execution on retail fundamentals.

As traffic data and intra-quarter commentary indicated, U.S. comp-sales deteriorated QoQ by -110bps for a -1.4% decline for Q4. Advan Research data showed a -136bps deterioration in traffic and -115bps in spend*. However, since the E. coli scare in October , the traffic and sales trend has improved as shown in the chart above. CEO Kris Kempczinski stated, “The U.S. food safety issue is now largely behind us, and we expect to have fully recovered by the beginning of Q2.

What struck us about Amazon’s Q4 results was the significant upside in its North America margins and profits; margins hit 8.0% vs. the expectation of 6.5% (BBG) and EBIT hit $9.3B vs. the expectation of $7.4B. Amazon has worked diligently to lower the cost to serve since early 2023 by staging more of its inventory close to the consumer using predictive inventory planning and is regional delivery stations. On the call, CEO Andy Jassy said, “Our speed of delivery continues to accelerate, and 2024 was another record-setting year for Prime members.