Sprouts Farmers Market Inc (SFM), Natural Grocers by Vitamin Cottage Inc (NGVC): It’s Full Speed Ahead for The Fresh Market Inc (TFM)

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For the latest third quarter, reported net income was $2.9 million, an increase of 31%, and diluted EPS was $0.13. Year-to-date, net income increased 46.7% to $8.3 million with diluted EPS of $0.37. Same-store sales rose 11.6% to $10.1 million. For fiscal 2014, the company forecasts its number of new stores at 15. Sales growth of over 25% is expected and net income is expected to grow by more than 30%.

My Foolish conclusion

As the economy continues to improve and shows more signs that the housing and job markets are returning to “normal,” these specialty food retailers should perform well over the long term as long as they’re able to keep their customers away from the competition, primarily Whole Foods.

Natural Grocers by Vitamin Cottage Inc (NYSE:NGVC) is following a smart strategy of giving equal weight to both managing costs and growing its number of stores. This is something The Fresh Market may want to make a note of, since expanding too rapidly can spell disaster down the road.

The article It’s Full Speed Ahead for The Fresh Market originally appeared on Fool.com and is written by Eileen Rojas.

Eileen Rojas has no position in any stocks mentioned. The Motley Fool recommends The Fresh Market. 

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