Sprouts Farmers Market (NASDAQ: SFM) Q1 2026 results and 2026 outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Sprouts Farmers Market, Inc. reported first quarter 2026 net sales of $2.33 billion, up 4% from the same period in 2025, with comparable store sales down 1.7%. Net income was $163.7 million and diluted EPS was $1.71, compared with $1.81 a year earlier.
EBIT for the quarter was $215.3 million and EBITDA was $259.6 million. Sprouts opened 6 new stores, bringing its total to 483 stores in 25 states, and ended the quarter with $252 million in cash and no borrowings on its $600 million revolver.
The company generated $235 million in operating cash flow and repurchased 1.9 million shares for $140 million. For second quarter 2026, Sprouts forecasts comparable store sales between (2)% and 0% and diluted EPS of $1.32 to $1.36. For full-year 2026 on a 52-week basis, it targets net sales growth of 4.5% to 6.5%, comparable store sales between (1)% and 1%, EBIT of $675 million to $695 million, diluted EPS of $5.32 to $5.48, over 40 new stores, and capital expenditures of $280 million to $310 million.
Positive
- None.
Negative
- None.
Insights
SFM grew sales modestly, with softer comps and cautious but positive 2026 guidance.
Sprouts Farmers Market delivered Q1 2026 net sales of $2.33 billion, up 4% year over year, while comparable store sales declined 1.7%. Net income of $163.7 million and diluted EPS of $1.71 were slightly below last year as margins normalized.
Profitability remained solid, with Q1 EBIT of $215.3 million and EBITDA of $259.6 million. The balance sheet is conservative, with $252 million in cash, no revolver borrowings, and strong operating cash flow of $235 million. Share repurchases of $140 million reduced the diluted share count.
Management’s outlook frames 2026 as a steady-growth year: full-year net sales are expected to rise 4.5%–6.5% with flat to slightly negative comps and EBIT of $675–$695 million. The plan includes opening 40+ new stores and investing $280–$310 million in capital spending, with an extra 53rd week estimated to add $200 million of sales and $0.21 of EPS.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net sales Q1 2026: $2.33 billion
Net income Q1 2026: $163.7 million
Diluted EPS Q1 2026: $1.71 per share
+5 more
8 metrics
Net sales Q1 2026
$2.33 billion
Thirteen weeks ended March 29, 2026; 4% increase vs 2025
Net income Q1 2026
$163.7 million
Thirteen weeks ended March 29, 2026
Diluted EPS Q1 2026
$1.71 per share
Compared with $1.81 in Q1 2025
Comparable store sales Q1 2026
(1.7)%
Same-store sales performance vs Q1 2025
EBIT Q1 2026
$215.3 million
Earnings before interest and taxes for the quarter
Operating cash flow Q1 2026
$235.3 million
Cash flows from operating activities year-to-date through March 29, 2026
Share repurchases Q1 2026
$140 million
1.9 million shares repurchased, excluding excise tax
Full-year 2026 EBIT outlook
$675–$695 million
Guidance on a 52-week basis
Key Terms
Comparable store sales, EBIT, EBITDA, Non-GAAP Financial Measures, +1 more
5 terms
Comparable store sales financial
"First Quarter Highlights •Net sales totaled $2.3 billion; a 4% increase... •Comparable store sales of (1.7)%"
Comparable store sales measure the change in revenue generated by stores that have been open for a certain period, typically at least one year. It helps assess how well a business is growing by showing whether existing stores are attracting more customers and sales, rather than just counting new store openings. Investors use this figure to gauge the true health and performance of a company's core operations over time.
EBIT financial
"The company defines EBIT as net income before interest expense and provision for income tax."
EBIT (Earnings Before Interest and Taxes) measures a company's profit from normal business operations after paying direct running costs but before subtracting interest on debt and income taxes. Think of it as how well a store does at selling its goods once everyday expenses are covered, ignoring loan payments and tax bills. Investors use EBIT to compare operational performance across companies without the distortion of different financing or tax situations.
EBITDA financial
"The company defines EBITDA as net income before interest expense, provision for income tax, and depreciation, amortization and accretion."
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.
Non-GAAP Financial Measures financial
"In addition to reporting financial results in accordance with GAAP, the company presents EBITDA and EBIT. These measures are not in accordance with, and are not intended as alternatives to, GAAP."
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
ROIC financial
"ROIC is an non-GAAP measure defined as net operating profit after taxes (referred to as "NOPAT"), including the effect of capitalized operating leases, divided by average invested capital."
Return on invested capital (ROIC) measures how well a company turns the money it uses to run and grow the business into profit, expressed as a percentage. Think of it like how much fruit a tree yields for each seed and watering dollar invested: higher ROIC means management is extracting more value from each dollar put into the company. Investors use it to compare how efficiently different companies deploy capital and whether returns justify the risk of holding the stock.
Earnings Snapshot
Net sales: $2.33B · Guidance included
Q1 2026
Net sales
$2.33B
+4% vs Q1 2025
Net income
$163.7M
vs $180.0M in Q1 2025
Diluted EPS
$1.71
vs $1.81 in Q1 2025
Comparable store sales
(1.7)%
negative same-store sales growth
Guidance
For full-year 2026 on a 52-week basis, Sprouts guides to 4.5%–6.5% net sales growth, comparable store sales of (1)% to 1%, EBIT of $675–$695M, diluted EPS of $5.32–$5.48, and 40+ new stores.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 29, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices and zip code)
(480 ) 814-8016
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02. Results of Operations and Financial Condition.
On April 29, 2026, Sprouts Farmers Market, Inc. (the “Company”) issued a press release announcing its results of operations for its first fiscal quarter ended March 29, 2026. On the same date, the Company posted on its investor relations website, located at investors.sprouts.com, a PowerPoint presentation (the “Earnings Presentation”) that will be used by management during the Company’s earnings conference call. A copy of the press release and the Earnings Presentation are furnished herewith as Exhibits 99.1 and 99.2, respectively, and are incorporated into this Item 2.02 by reference.
The information furnished in this Item 2.02, including Exhibits 99.1 and 99.2 attached hereto and incorporated herein, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 7.01. Regulation FD Disclosure.
The information set forth under Item 2.02 is hereby incorporated by reference.
The Company is also furnishing in this Current Report on Form 8-K a PowerPoint presentation (the “Investor Presentation”) to be used by the Company at various meetings with institutional investors or analysts. The Investor Presentation may be amended or updated at any time and from time to time through another Current Report on Form 8-K, a later company filing or other means. A copy of the Investor Presentation is furnished herewith as Exhibit 99.3 and is incorporated into this Item 7.01 by reference.
The information furnished in this Item 7.01, including Exhibits 99.1, 99.2 and 99.3, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
The Company does not have, and expressly disclaims, any obligation to release publicly any updates or any changes in our expectations or any change in events, conditions, or circumstances on which any forward-looking statement in the attached press release, Earnings Presentation or Investor Presentation is based.
The text of this Current Report on Form 8-K and the attached press release, Earnings Presentation and Investor Presentation are available on the Company’s investor relations website located at investors.sprouts.com, although the Company reserves the right to discontinue that availability at any time.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits
Exhibit Number | Description | |||||||
| 99.1 | Press release of Sprouts Farmers Market, Inc., dated April 29, 2026, entitled “Sprouts Farmers Market, Inc. Reports First Quarter 2026 Results” | |||||||
| 99.2 | Sprouts Farmers Market, Inc. Presentation, dated April 29, 2026, entitled “Q1 2026 Earnings" | |||||||
| 99.3 | Sprouts Farmers Market, Inc. Presentation, dated April 29, 2026, entitled "Investor Deck" | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SPROUTS FARMERS MARKET, INC. | ||||||||
Date: April 29, 2026 | By: | /s/ Brandon F. Lombardi | ||||||
| Name: | Brandon F. Lombardi | |||||||
| Title: | Chief Legal Officer and Corporate Secretary | |||||||
Exhibit 99.1
| Investor Contact: | Media Contact: | ||||
| Susannah Livingston | media@sprouts.com | ||||
| (602) 682-1584 | |||||
| susannahlivingston@sprouts.com | |||||
Sprouts Farmers Market, Inc. Reports First Quarter 2026 Results
PHOENIX, Ariz. – (Business Wire) – April 29, 2026 – Sprouts Farmers Market, Inc. (Nasdaq: SFM) today reported results for the 13-week first quarter ended March 29, 2026.
“The first quarter played out largely as we expected,” said Jack Sinclair, chief executive officer of Sprouts Farmers Market. “We continue to focus on accelerating customer engagement, foraging and discovery, building an advantaged supply chain, and expanding access to healthy food. We remain confident in our long-term potential and expect sequential improvement in the business throughout 2026 as we reaccelerate growth. I want to thank our team members for their diligence in executing our strategy and for their dedication to serving our customers.”
First Quarter Highlights:
•Net sales totaled $2.3 billion; a 4% increase from the same period in 2025
•Comparable store sales of (1.7)%
•Diluted earnings per share of $1.71; compared to diluted earnings per share of $1.81 in the same period in 2025
•Opened 6 new stores, resulting in 483 stores in 25 states as of March 29, 2026
Leverage and Liquidity in First Quarter 2026
•Ended the quarter with $252 million in cash and cash equivalents and zero balance on our $600 million revolving credit facility
•Repurchased 1.9 million shares of common stock for a total investment of $140 million, excluding excise tax
•Generated cash from operations of $235 million and invested $98 million in capital expenditures, net of landlord reimbursement, year-to-date thru March 29, 2026
Second Quarter and Full-Year 2026 Outlook
The following provides information on our second quarter 2026 outlook:
•Comparable store sales: (2)% to 0%
•Diluted earnings per share: $1.32 to $1.36
The Company notes the fiscal year 2026 will be a 53-week year, with the extra week falling in the fourth quarter.
We estimate the impact from the 53rd week to be approximately $200 million in sales, $28 million in income before interest and taxes, and $0.21 in diluted earnings per share.
The following provides information on our full-year 2026 outlook (on a 52 week basis):
•Net sales growth: 4.5% to 6.5%
•Comparable store sales: (1)% to 1%
•EBIT: $675 million to $695 million
•Diluted earnings per share: $5.32 to $5.48
•Unit growth: 40+ new stores
•Capital expenditures (net of landlord reimbursements): $280 million to $310 million
First Quarter 2026 Conference Call
Sprouts will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, April 29, 2026, during which Sprouts executives will further discuss first quarter 2026 financial results.
A webcast of the conference call will be available through Sprouts’ investor relations webpage, accessible via the following link. Participants should register on the website approximately ten minutes prior to the start of the webcast.
A webcast replay will be available at approximately 8:00 p.m. Eastern Time on April 29, 2026. This can be accessed with the following link.
Important Information Regarding Outlook
There is no guarantee that Sprouts will achieve its projected financial expectations, which are based on management estimates, currently available information and assumptions that management believes to be reasonable. These expectations are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management. See “Forward-Looking Statements” below.
Forward-Looking Statements
Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact (including, but not limited to, statements to the effect that Sprouts Farmers Market or its management "anticipates," "plans," "estimates," "expects," "will," "believes," or "projects," or the negative of these terms and other similar expressions) should be considered forward-looking statements, including, without limitation, statements regarding the company’s outlook, growth, opportunities and long-term strategy. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this release. These risks and uncertainties include, without limitation, the company’s ability to execute on its long-term strategy; the company’s ability to successfully compete in its competitive industry; the company’s ability to successfully open new stores; the company’s ability to manage its growth; the company’s ability to maintain or improve its operating margins; the company’s ability to identify and react to trends in consumer preferences in a timely manner; product supply disruptions; equipment supply disruptions; general economic conditions that impact consumer spending or result in competitive responses; accounting standard changes; potential inflationary and/or deflationary trends; tariffs; and other factors as set forth from time to time in the company’s Securities and Exchange Commission filings, including, without limitation, the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The company intends these forward-looking statements to speak only as of the time of this release and does not undertake to update or revise them as more information becomes available, except as required by law.
Corporate Profile
Sprouts Farmers Market is one of the largest and fastest growing specialty retailers of fresh, natural and organic food in the United States. Sprouts helps people live and eat better with fresh produce at the heart of the store and delicious discoveries for every dietary lifestyle. Always foraging for what’s fresh and innovative, Sprouts offers a carefully curated assortment of products that inspire wellness naturally, including organic, gluten-free, plant-based and non-GMO favorites. Headquartered in Phoenix, AZ, Sprouts employs more than 36,000 team members and operates more than 480 stores in 25 states nationwide. To learn more about Sprouts and the role it plays in its communities, visit sprouts.com/about/.
SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
| Thirteen weeks ended | |||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||
| Net sales | $ | 2,329,179 | $ | 2,236,436 | |||||||
| Cost of sales | 1,411,903 | 1,350,073 | |||||||||
| Gross profit | 917,276 | 886,363 | |||||||||
| Selling, general and administrative expenses | 658,781 | 623,226 | |||||||||
| Depreciation and amortization (exclusive of depreciation included in cost of sales) | 42,027 | 35,099 | |||||||||
| Store closure and other costs, net | 1,161 | 1,706 | |||||||||
| Income from operations | 215,307 | 226,332 | |||||||||
| Interest income, net | (129) | (924) | |||||||||
| Income before income taxes | 215,436 | 227,256 | |||||||||
| Income tax provision | 51,712 | 47,230 | |||||||||
| Net income | $ | 163,724 | $ | 180,026 | |||||||
| Net income per share: | |||||||||||
| Basic | $ | 1.73 | $ | 1.83 | |||||||
| Diluted | $ | 1.71 | $ | 1.81 | |||||||
| Weighted average shares outstanding: | |||||||||||
| Basic | 94,813 | 98,537 | |||||||||
| Diluted | 95,585 | 99,719 | |||||||||
SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
| March 29, 2026 | December 28, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 252,161 | $ | 257,282 | |||||||
| Accounts receivable, net | 63,313 | 65,221 | |||||||||
| Inventories | 419,178 | 427,095 | |||||||||
| Prepaid expenses and other current assets | 37,642 | 60,306 | |||||||||
| Total current assets | 772,294 | 809,904 | |||||||||
| Property and equipment, net of accumulated depreciation | 1,128,928 | 1,085,356 | |||||||||
| Operating lease assets, net | 1,756,367 | 1,652,732 | |||||||||
| Intangible assets | 208,215 | 208,215 | |||||||||
| Goodwill | 381,750 | 381,750 | |||||||||
| Other assets | 21,820 | 20,692 | |||||||||
| Total assets | $ | 4,269,374 | $ | 4,158,649 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 260,737 | $ | 291,033 | |||||||
| Accrued liabilities | 311,281 | 304,419 | |||||||||
| Accrued salaries and benefits | 61,461 | 96,017 | |||||||||
| Accrued income tax | 16,396 | — | |||||||||
| Current portion of operating lease liabilities | 185,374 | 177,263 | |||||||||
| Current portion of finance lease and other finance obligations | 2,549 | 2,071 | |||||||||
| Total current liabilities | 837,798 | 870,803 | |||||||||
| Long-term operating lease liabilities | 1,775,890 | 1,682,425 | |||||||||
| Long-term debt and other finance obligations | 97,044 | 81,585 | |||||||||
| Other long-term liabilities | 40,853 | 40,283 | |||||||||
| Deferred income tax liability | 83,549 | 80,479 | |||||||||
| Total liabilities | 2,835,134 | 2,755,575 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders’ equity: | |||||||||||
| Undesignated preferred stock; $0.001 par value; 10,000,000 shares authorized, no shares issued and outstanding | — | — | |||||||||
Common stock, $0.001 par value; 200,000,000 shares authorized, 94,556,903 shares issued and outstanding, March 29, 2026; 95,926,024 shares issued and outstanding, December 28, 2025 | 95 | 96 | |||||||||
| Additional paid-in capital | 850,411 | 841,848 | |||||||||
| Retained earnings | 583,734 | 561,130 | |||||||||
| Total stockholders’ equity | 1,434,240 | 1,403,074 | |||||||||
| Total liabilities and stockholders’ equity | $ | 4,269,374 | $ | 4,158,649 | |||||||
SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS)
| Thirteen weeks ended | |||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||
| Operating activities | |||||||||||
| Net income | $ | 163,724 | $ | 180,026 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization expense | 44,276 | 36,820 | |||||||||
| Operating lease asset amortization | 38,598 | 34,689 | |||||||||
| Share-based compensation | 8,563 | 6,656 | |||||||||
| Deferred income taxes | 3,070 | 4,595 | |||||||||
| Other non-cash items | 1,785 | 1,532 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | 2,894 | 10,763 | |||||||||
| Inventories | 7,917 | 3,049 | |||||||||
| Prepaid expenses and other current assets | 21,293 | (236) | |||||||||
| Other assets | (412) | (357) | |||||||||
| Accounts payable | 3,147 | 54,084 | |||||||||
| Accrued liabilities | 190 | 6,102 | |||||||||
| Accrued salaries and benefits | (34,556) | (29,777) | |||||||||
| Accrued income tax | 16,396 | 33,922 | |||||||||
| Operating lease liabilities | (41,570) | (41,249) | |||||||||
| Other long-term liabilities | (28) | (1,530) | |||||||||
| Cash flows from operating activities | 235,287 | 299,089 | |||||||||
| Investing activities | |||||||||||
| Purchases of property and equipment | (101,151) | (59,479) | |||||||||
| Cash flows used in investing activities | (101,151) | (59,479) | |||||||||
| Financing activities | |||||||||||
| Payments on finance lease liabilities | (225) | (326) | |||||||||
| Repurchase of common stock | (140,000) | (218,762) | |||||||||
| Cash flows used in financing activities | (140,225) | (219,088) | |||||||||
| (Decrease)/Increase in cash, cash equivalents, and restricted cash | (6,089) | 20,522 | |||||||||
| Cash, cash equivalents, and restricted cash at beginning of the period | 260,894 | 267,213 | |||||||||
| Cash, cash equivalents, and restricted cash at the end of the period | $ | 254,805 | $ | 287,735 | |||||||
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with accounting principles generally accepted in the United States (“GAAP”), the company presents EBITDA and EBIT. These measures are not in accordance with, and are not intended as alternatives to, GAAP. The company's management believes that this presentation provides useful information to management, analysts and investors regarding certain additional financial and business trends relating to its results of operations and financial condition. In addition, management uses these measures for reviewing the financial results of the company, and certain of these measures may be used as components of incentive compensation.
The company defines EBITDA as net income before interest expense, provision for income tax, and depreciation, amortization and accretion. The company defines EBIT as net income before interest expense and provision for income tax.
Non-GAAP measures are intended to provide additional information only and do not have any standard meanings prescribed by GAAP. Use of these terms may differ from similar measures reported by other companies. Because of their limitations, non-GAAP measures should not be considered as a measure of discretionary cash available to use to reinvest in the growth of the company’s business, or as a measure of cash that will be available to meet the company’s obligations. Each non-GAAP measure has its limitations as an analytical tool, and they should not be considered in isolation or as a substitute for analysis of the company’s results as reported under GAAP.
The following table shows a reconciliation of EBIT and EBITDA to net income for the thirteen weeks ended March 29, 2026 and March 30, 2025:
SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES
NON-GAAP MEASURE RECONCILIATION
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
| Thirteen weeks ended | |||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||
| Net income | $ | 163,724 | $ | 180,026 | |||||||
| Income tax provision | 51,712 | 47,230 | |||||||||
| Interest (income) expense, net | (129) | (924) | |||||||||
| Earnings before interest and taxes (EBIT) | 215,307 | 226,332 | |||||||||
| Depreciation, amortization and accretion | 44,276 | 36,820 | |||||||||
| EBITDA | $ | 259,583 | $ | 263,152 | |||||||
###
Source: Sprouts Farmers Market, Inc
Phoenix, AZ
4/29/26
Sprouts Farmers Market Q1 2026 Earnings April 29, 2026 Exhibit 99.2
Forward-Looking Statements Certain statements in this presentation are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact (including, but not limited to, statements to the effect that Sprouts Farmers Market or its management "anticipates," "plans," "estimates," "expects," "will," "believes," or "projects," or the negative of these terms and other similar expressions) should be considered forward-looking statements, including, without limitation, statements regarding the company’s outlook, growth, opportunities and long-term strategy. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this presentation. These risks and uncertainties include, without limitation, the company’s ability to execute on its long-term strategy; the company’s ability to successfully compete in its competitive industry; the company’s ability to successfully open new stores; the company’s ability to manage its growth; the company’s ability to maintain or improve its operating margins; the company’s ability to identify and react to trends in consumer preferences in a timely manner; product supply disruptions; equipment supply disruptions; general economic conditions that impact consumer spending or result in competitive responses; accounting standard changes; potential inflationary and/or deflationary trends; tariffs; and other factors as set forth from time to time in the company’s Securities and Exchange Commission filings, including, without limitation, the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The company intends these forward-looking statements to speak only as of the time of this presentation and does not undertake to update or revise them as more information becomes available, except as required by law. Non-GAAP Financial Measures We refer to adjusted gross profit, adjusted gross margin, EBIT, adjusted EBIT, adjusted EBIT Margin, and adjusted diluted earnings per share, each of which is a Non-GAAP Financial Measure. These measures are not prepared in accordance with, and are not intended as alternatives to, generally accepted accounting principles in the United States, or GAAP. The Company's management believes that such measures provide useful information to management, analysts and investors regarding certain additional financial and business trends relating to its results of operations and financial condition. In addition, management uses these measures for reviewing the Company’s financial results, and certain of these measures may be used as components of incentive compensation. The Company defines adjusted gross profit as gross profit, excluding the impact of special items. Adjusted gross margin reflects adjusted gross profit divided by net sales for the applicable period. EBIT is defined as net income before interest expense and provision for income tax, and adjusted EBIT as EBIT, excluding the impact of special items. Adjusted EBIT Margin reflects adjusted EBIT, divided by net sales for the applicable period. The Company defines adjusted diluted earnings per share as diluted earnings per share excluding the impact of special items. Non-GAAP measures are intended to provide additional information only and do not have any standard meanings prescribed by GAAP. Use of these terms may differ from similar measures reported by other companies. Because of their limitations, non-GAAP measures should not be considered as a measure of discretionary cash available to use to reinvest in the growth of the Company’s business, or as a measure of cash that will be available to meet the Company’s obligations. Each non-GAAP measure has its limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. To the extent forward looking non-GAAP financial measures are provided herein, they are not reconciled to comparable forward-looking GAAP measures due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. 2
3
First Quarter 2026 Highlights Net Sales +4% Comps(1) (1.7)% New Store Openings 6 Diluted EPS $1.71 EPS(2) (6)% Cash Generation $235M Share Repurchases(3) $140M 1. Comparable Store Sales 2. Reflects comparison of Q1 26 diluted EPS to Q1 25 diluted EPS 3. Excluding excise tax 4
Launched More Than 1500 Unique Items Self-Distribution of Meat is Nearly Complete Opened 6 new Stores in Q1 Healthy Balance Sheet & Robust Cash Flow Provide Flexibility to Invest in the Business Strong New Store Performance Initiatives Remain on Track in 2026 Fast Adoption of the Loyalty Program
Solid Financials 6 $1,733 $1,884 $2,236 $2,329 Q1 23 Q1 24 Q1 25 Q1 26 37.5% 38.3% 39.6% 39.4% Q1 23 Q1 24 Q1 25 Q1 26 NET SALES ($ in mm) GROSS MARGIN (1) Q1 23 EBIT and EBIT margin are presented on an adjusted basis. See the Appendix to this presentation for a reconciliation of EBIT and EBIT margin to adjusted EBIT and adjusted EBIT margin. $137 $148 $226 $215 7.9% 7.9% 10.1% 9.2% Q1 23 Q1 24 Q1 25 Q1 26 EBIT & EBIT MARGIN(1) ($ in mm)
Solid Financials 7 Diluted Earnings Per Share(1) ROIC(2) 12.7% 13.1% 16.8% 17.4% Q1 23 Q1 24 Q1 25 Q1 26 $0.98 $1.12 $1.81 $1.71 Q1 23 Q1 24 Q1 25 Q1 26 (1) Q1 23 diluted earnings per share is presented on an adjusted basis. See the Appendix to this presentation for a reconciliation of diluted earnings per share to adjusted diluted earnings per share. (2)See the Appendix to this presentation for a reconciliation of ROIC to net income. ROIC is an non-GAAP measure defined as net operating profit after taxes (referred to as "NOPAT"), including the effect of capitalized operating leases, divided by average invested capital.
Strong Balance Sheet, Robust Cash Flows ($ in mm) 1. Capital expenditures are net of landlord reimbursement 2. Excluding excise tax Self Fund our Growth and Deliver Shareholder Value Through Ongoing Share Repurchase $45 $46 $49 $98 $98 $60 $219 $140 $180 $220 $299 $235 Cap Ex Share Repurchase Operating Cash Flow Q1 23 Q1 24 Q1 25 Q1 26 8 (1) (2)
Expect to open 40+ new stores Capex (net of landlord reimbursement) $280 million to $310 million Second Quarter 2026: Comp sales of (2)% to 0% and diluted EPS $1.32 to $1.36 Net sales growth of 4.5% to 6.5% Comp sales of (1)% to 1% Earnings before interest & taxes (EBIT) $675 million to $695 million Diluted earnings per share (EPS) $5.32 to $5.48 9 Full-Year 2026 Outlook (on a 52 week basis)(1) (1)The Company notes the fiscal year 2026 will be a 53-week year, with the extra week falling in the fourth quarter. We estimate the impact from the 53rd week to be approximately $200 million in sales, $28 million in income before interest and taxes, and $0.21 in diluted earnings per share.
Appendix
Appendix SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES NON-GAAP MEASURE RECONCILIATION (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) The following table shows a reconciliation of EBIT and adjusted EBIT to net income, adjusted EBIT margin to EBIT margin, as well as a reconciliation of adjusted net income and adjusted diluted earnings per share to net income and diluted earnings per share for the 13 weeks ended March 29, 2026, March 30, 2025, March 31, 2024 and April 2, 2023 11 Thirteen weeks ended Thirteen weeks ended Thirteen Weeks Ended Thirteen Weeks Ended Mar 29, 2026 Mar 30, 2025 Mar 31, 2024 Apr 2, 2023 Net Sales $ 2,329,179 $ 2,236,436 $ 1,883,808 $ 1,733,310 Net Income $ 163,724 $ 180,026 $ 114,100 $ 76,160 Income tax provision 51,712 47,230 33,348 23,142 Interest (income) expense, net (129) (924) 818 2,220 Earnings before interest and taxes (EBIT) 215,307 226,332 148,266 101,522 Special Items — — — 35,527 (1) Adjusted EBIT $ 215,307 $ 226,332 $ 148,266 $ 137,049 EBIT Margin 9.2 % 10.1 % 7.9 % 5.9 % Adjusted EBIT Margin 9.2 % 10.1 % 7.9 % 7.9 % Net Income $ 163,724 $ 180,026 $ 114,100 $ 76,160 Special Items, net of tax — — — 26,521 (1) Adjusted Net income $ 163,724 $ 180,026 $ 114,100 $ 102,681 Diluted EPS $ 1.71 $ 1.81 $ 1.12 $ 0.73 Adjusted Diluted EPS $ 1.71 $ 1.81 $ 1.12 $ 0.98 Diluted Weighted Average Shares Outstanding 95,585 99,719 102,024 104,876 (1) For the thirteen weeks ended April 2, 2023, special items included approximately $28 million in store closure and other costs, net primarily related to impairment charges and $4 million in Depreciation and amortization (exclusive of depreciation in cost of sales) for accelerated depreciation in connection with store closures, $3 million in selling, general and administrative expenses related to our supply chain transition and acquisition-related costs. After-tax impact includes the tax benefit on the pre-tax charge.
Appendix The following table shows a reconciliation of ROIC to net income for the Company's first quarter of 2026. 2025, 2024 and 2023. 12
SPROUTS FARMERS MARKET Investor Deck April 2026 Exhibit 99.3
Forward-Looking Statements Certain statements in this presentation are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact (including, but not limited to, statements to the effect that Sprouts Farmers Market or its management "anticipates," "plans," "estimates," "expects," "will," "believes," or "projects," or the negative of these terms and other similar expressions) should be considered forward-looking statements, including, without limitation, statements regarding the company’s outlook, growth, opportunities and long-term strategy. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this presentation. These risks and uncertainties include, without limitation, the company’s ability to execute on its long-term strategy; the company’s ability to successfully compete in its competitive industry; the company’s ability to successfully open new stores; the company’s ability to manage its growth; the company’s ability to maintain or improve its operating margins; the company’s ability to identify and react to trends in consumer preferences in a timely manner; product supply disruptions; equipment supply disruptions; general economic conditions that impact consumer spending or result in competitive responses; accounting standard changes; potential inflationary and/or deflationary trends; tariffs; and other factors as set forth from time to time in the company’s Securities and Exchange Commission filings, including, without limitation, the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The company intends these forward-looking statements to speak only as of the time of this presentation and does not undertake to update or revise them as more information becomes available, except as required by law. We refer to adjusted gross profit, adjusted gross margin, EBIT, adjusted EBIT, adjusted EBIT Margin, and adjusted diluted earnings per share, each of which is a Non-GAAP Financial Measure. These measures are not prepared in accordance with, and are not intended as alternatives to, generally accepted accounting principles in the United States, or GAAP. The Company's management believes that such measures provide useful information to management, analysts and investors regarding certain additional financial and business trends relating to its results of operations and financial condition. In addition, management uses these measures for reviewing the Company’s financial results, and certain of these measures may be used as components of incentive compensation. The Company defines adjusted gross profit as gross profit, excluding the impact of special items. Adjusted gross margin reflects adjusted gross profit divided by net sales for the applicable period. EBIT is defined as net income before interest expense and provision for income tax, and adjusted EBIT as EBIT, excluding the impact of special items. Adjusted EBIT Margin reflects adjusted EBIT, divided by net sales for the applicable period. The Company defines adjusted diluted earnings per share as diluted earnings per share excluding the impact of special items. Non-GAAP measures are intended to provide additional information only and do not have any standard meanings prescribed by GAAP. Use of these terms may differ from similar measures reported by other companies. Because of their limitations, non-GAAP measures should not be considered as a measure of discretionary cash available to use to reinvest in the growth of the Company’s business, or as a measure of cash that will be available to meet the Company’s obligations. Each non-GAAP measure has its limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. To the extent forward looking non-GAAP financial measures are provided herein, they are not reconciled to comparable forward-looking GAAP measures due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Unless otherwise indicated, information included in this presentation is as of our 2025 fiscal year ended December 28, 2025. Non-GAAP Financial Measures 2
OUR PURPOSE We help People Live and Eat Better 3 3 3
WIN WITH TARGET CUSTOMERS Sprouts’ Long-Term Strategy Four Strategic Pillars Driving Sustainable Growth No. 1 No. 2 No. 3 No. 4 DEEPEN CUSTOMER ENGAGEMENT & PERSONALIZATION BUILD AN ADVANTAGED SUPPLY CHAIN EXPAND STORE & MARKET FOOTPRINT • High quality attribute-led assortment • Innovation leader • Service-driven store experience • Omni-channel experience • Deep understanding of target customers • Create value via personalization & loyalty • Grow awareness & acquisition • New stores, new markets • Small box, de-risked new store format • Accelerated new store performance • Own and improve fresh distribution • Network expansion & efficiency • Increase local sourcing 4
Sales Growth Earnings Growth Store Expansion Strong ROIC Sprouts Long-Term Strategy Delivers Key Financial Metrics 5
Why Invest in Sprouts? • Huge potential with health & wellness • Powerful growth opportunity • Healthy financials • Differentiated experience • Strong leadership with values-driven culture 6
Powerful Growth Opportunity Plenty of white space Advantaged supply chain Why Invest in Sprouts Farmers Market? A differentiated, powerful growth business No. 1 No. 2 No. 3 No. 4 Healthy Financials Structurally improved margins Strong ROIC Robust cash flow Strong box economics Strong Leadership with Values-Driven Culture Experienced executive team Talent engine Commitment to community & planet Differentiated Experience; Health & Wellness Focus Innovation via foraging Attribute-driven products, high quality Sprouts Brand Best-in-class customer service, easy to shop Engagement Opportunity 7
8 • Focus on natural and organic products (vs. CPG), a fast-growing channel of food at home • Huge opportunity to grow target customer share of wallet • Tailored marketing highlighting health and affordability • Innovation center with latest healthy trends • Revamped site selection model finding optimal locations for target customer convenience CONSUMERS SPEND $1.6T ON FOOD AT HOME (1) Sprouts’ Target Customers (1) (1) Source 2019-2024 Consumer Research; Kantar IQ; Willard Bishop Food Retailing Reports; PG100 Reports; Euromonitor $290B Huge Potential With Health & Wellness Target Customer
Powerful Growth Opportunity Plenty of white space, potential for 1000+ stores 9
Powerful Growth Opportunity Build an Advantaged fresh supply chain Distribution Centers (DCs) within 250 miles of the majority of stores Investing in forecasting & replenishment systems to scale & grow Locally sourced: Partnerships with 170 local farmers; 17% of total produce sales Efficiency: 80% of stores within 250 miles of DC Consolidate sourcing for improved Self- distribution of fresh meat - improved freshness & cost effectiveness Network Expansion: Exploring DC locations in Southeast, MidAtlantic & Midwest 10
36.7% 38.8% 2022 2025 Healthy Financials Stronger Foundation: Strategic Initiatives Taking Hold(1) NET SALES GROWTH (1) See the Appendix to this presentation for a reconciliation of EBIT to net income and a reconciliation of ROIC to net income. ROIC is a non-GAAP measure defined as net operation profit after taxes divided by average invested capital ($ in mm) ROICEBIT & EBIT MARGIN GROSS MARGIN $6,404 $8,806 2022 2025 $358 $686 2022 2025 12.4% 18.3% 2022 2025 ($ in mm) 11
Healthy Financials Diluted Earnings per Share Growing $2.39 $5.31 2022 2025 12
Healthy Financials Strong Balance Sheet, Robust Cash Flows ($ in mm) 1. Capital expenditures are net of landlord reimbursement 2. Excluding excise tax Self-fund growth and deliver shareholder value with ongoing share repurchases (1) (2) 13
EBITDA MARGINS • Break even year 1 • Grows to a blended ~8% EBITDA Margins over the next 4 years CASH INVESTMENT • $3.8M average new store build including CapEx, Inventory and Pre- opening expenses 1. These are targets and not projections; they are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and are based on assumptions with respect to future decisions, which may be subject to change. Actual results may vary and the variances may be material. Nothing in this presentation should be regarded as a representation that these targets will be achieved and the Company undertakes no duty to update its targets. See “Forward- Looking Statements.” SALES • Box opens on average at $13M in year 1 annual sales • Grows 20% to 25% over next the next 4 years CASH ON CASH RETURN • Low to mid thirties by year 5 14 Healthy Financials Strong four wall target box economics(1); Robust new store performance
Attractive New Store Economics ~10%-unit growth(2) Low single digit comps Stable EBIT Margins off a Higher Base (1) These are targets and not projections; they are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and are based on assumptions with respect to future decisions, which may be subject to change. Actual results may vary and the variances may be material. Nothing in this presentation should be regarded as a representation that these targets will be achieved and the Company undertakes no duty to update its targets. See “Forward-Looking Statements.” (2) Expect to open 40+ stores in 2026 15 Healthy Financials: Long-term Strategic Financial Targets(1) Low double-digit earnings growth and strong ROIC
(1) These are targets and not projections; they are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and are based on assumptions with respect to future decisions, which may be subject to change. Actual results may vary and the variances may be material. Nothing in this presentation should be regarded as a representation that these targets will be achieved and the Company undertakes no duty to update its targets. See “Forward-Looking Statements.” See the Appendix to this presentation for a reconciliation of EBIT margin to the comparable GAAP figure. KEY COMP DRIVERS • Tailored marketing • Innovative, differentiated products • Omnichannel offering • Customer engagement • New store comp tailwind – partially offset by cannibalization MARGIN STABILITY + Supply chain optimization + Inventory Management + Fixed cost leverage as we scale + Labor productivity and cost management - Headwinds from ecommerce and new store growth 16 HEALTHY FINANCIALS Low Single-digit Comps Targets & Stable EBIT Margins(1)
Increasingly locally sourced fresh produce Knowledgeable & friendly team members Produce at the heart of the store Farmer’s market feel: small size, low profile Intersection of health and affordability Differentiated Store Experience 17
Differentiated Experience Innovation via foraging 18 • >7,000 new items introduced in 2025 • Foraging Finds showcases new items monthly 18
Sprouts Brand Sales Penetration(1) • $2.3B in sales of Sprouts Brand Products in 2025: up +33% from $1.7B in 2024n 5) • >600 Sprouts Brand products launched in 2025 (1) Sprouts Brand Sales Penetration represents sales of Sprouts Brand products, as a percentage of total company sales. 19 Differentiated Offering High quality Sprouts Brand: Over $2B In Sales 19% 20% 23% 26% 2022 2023 2024 2025
20 Differentiated Experience: >70% of products sold are attribute-driven Department Highlights: • >30% of products sold are organic • >50% of Produce is organic • >50% of Dairy is organic • >30% of Bakery is non-GMO • >21% of Meat is grass-fed; 50% of beef is grass-fed • 100% of Seafood is responsibly- sourced • >50% of Frozen is gluten-free
• Stronger interest in organics, fresh, less processed foods, sustainability • Seeks high quality, lifestyle-friendly products, & differentiated assortment; pays greater attention to labels • Willing to make more of an effort (to drive farther or to make an additional trip) to get the items that meet their needs & standards • Slightly higher educated • Skews higher income • Continue to attract younger customers • >15% sales penetration from Ecommerce: Majority of ecommerce customers are omnichannel with higher share of wallet 21 Health & Wellness Focus: Target Customer Demographics: Consumer who craves health & wellness
• Healthy sign-ups: fast adoption of loyalty program • Customers love shopping at Sprouts - they have unique needs and want differentiated products • Gathering more data allows us to better understand and serve our target customers: • Personalized experience • Product recommendation (hyper relevant) • Creates long-term customer stickiness • Sprouts Rewards members come more often and spend more • ~55% of total sales from ID customers by end of 2025 2024 22 Health & Wellness Focus: Opportunity for Further Engagement
23 Strong Leadership with Values-Driven Culture Executive Management Team with Leading Grocery & Retail Experience Jack Sinclair Chief Executive Officer since 2019 Curtis Valentine Chief Financial Officer since 2024 (joined SFM in 2015) Don Clark Chief Merchandising Officer since 2026 Dustin Hamilton Chief Stores Officer since 2023 (joined SFM in 2021) Dave McGlinchey Chief Development Officer since 2022 (joined SFM in 2017) Brandon Lombardi Chief Legal Officer & Chief Sustainability Officer since 2012 Kim Coffin Chief Forager since 2022 (joined SFM in 2012) Joe Hurley Chief Supply Chain Officer since 2023 (joined SFM in 2019) James Bahrenburg Chief Technology Officer since 2023 Timmi Zalatoris Chief Human Resources Officer since 2023 (joined SFM in 2017) Nick Konat President & Chief Operating Officer since 2022 Amanda Rassi Chief Customer Officer since 2026
In 2025: • 3,700 New jobs created • 68,735 Leadership training hours delivered • >$21/hr Average pay rate for store team members • ~60% Store Manager positions filled with internal candidates 24 Creating a Talent Engine to Support our Growth
• $31M in bonuses paid to field team members • $26M in savings for team members with store discount WE CARE WE OWN ITWE LOVE BEING DIFFERENT 25 Three Simple Values at the Heart of our Strong Culture
• 36 million pounds of food donated—providing an estimated 30 million meals • 60% of sales of products with a social or environmental attribute • >30% of total sales from Organic products; >50% of total fresh produce sales are organic • Completed the transition to LED lighting across our store fleet • Finalized the transition to group-housed pork in our meat department • Released a formal Pollinator Health commitment Sprouts Healthy Communities Foundation: • >$3.3 million invested in hyper-local grants to 550 nonprofit organizations and schools focused on school garden education and health and wellness programs • $10 million in high-impact capacity grants to empower nonprofit organizations to expand program operations 26 Values-Driven Culture Commitment to Community & Planet at Sprouts in 2025
Sprouts delivers a unique farmers market experience: bringing together passionate, knowledgeable team members, and the best assortment of high- quality food 27 We Help People Live and Eat Better
APPENDIX 28
Appendix SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES NON-GAAP MEASURE RECONCILIATION (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) The following table shows a reconciliation of EBIT to net income for the fiscal years ended December 28, 2025 and January 1, 2023 29 Fifty-Two Weeks endedFifty-Two Weeks ended Jan 1, 2023Dec 28, 2025 $ 261,164$ 523,670Net Income 88,149165,114Income tax provision 9,047(2,626)Interest (income) expense, net 358,360686,158Earnings before interest and taxes (EBIT) 5.6 %7.8 %EBIT Margin
APPENDIX The following table shows a reconciliation of ROIC to net income for the Company’s 2025 and 2022 fiscal years 30 Sprouts Farmers Market, Inc. and Subsidiaries Non-GAAP Measure Reconciliation (In thousands) (Unaudited) 2025 2022 Net income (1) 523.7$ 261.2$ Interest expense, net of tax (2) (2.0)$ 6.8$ Net operating profit after tax (NOPAT) 521.7$ 267.9$ Total rent expense, net of tax (2) 208.4$ 154.6$ Estimated depreciation on operating leases, net of tax (2) 114.9$ (87.8)$ Estimated interest on operating leases, net of tax (2,3) 93.6$ 66.9$ NOPAT, including effect of operating leases 615.3$ 334.8$ Average working capital 148.3$ 271.6$ Average property and equipment 958.4$ 704.8$ Average other assets 607.2$ 568.6$ Average other liabilities (114.1)$ (96.6)$ Average invested capital 1,599.7$ 1,448.4$ Average operating leases (4) 1,758.6$ 1,259.4$ Average invested capital, including operating leases 3,358.3$ 2,707.8$ ROIC, including operating leases 18.3% 12.4% (1) Net income amounts represent total net income for the past four trailing quarters. (2) Net of tax amounts are calculated using the normalized effective tax rate for the period presented. (3) 2025 & 2022 estimated interest on operating leases is calculated by multiplying operating leases by a 7.0% & 7.1% discount rate, respectively, for each lease recorded as rent expense within direct store expense. (4) 2025 & 2022 average operating leases represents the average net present value of outstanding lease obligations over the past four trailing quarters.
FAQ
How did Sprouts Farmers Market (SFM) perform in Q1 2026?
Sprouts Farmers Market reported Q1 2026 net sales of $2.33 billion, up 4% year over year. Net income was $163.7 million and diluted EPS was $1.71, compared with $1.81 in Q1 2025, reflecting softer comparable sales and margin trends.
What were Sprouts Farmers Market (SFM) Q1 2026 comparable store sales?
In Q1 2026, Sprouts Farmers Market’s comparable store sales declined 1.7%. This means existing stores, open at least a year, generated slightly lower sales than in Q1 2025, even though total company net sales rose due to new store openings and overall growth.
What guidance did Sprouts Farmers Market (SFM) give for Q2 2026?
For Q2 2026, Sprouts Farmers Market expects comparable store sales between (2)% and 0% and diluted EPS of $1.32 to $1.36. This outlook reflects modest sales trends alongside continued profitability as the company executes its strategic initiatives and expansion plans.
What is Sprouts Farmers Market’s (SFM) full-year 2026 outlook?
On a 52-week basis, Sprouts Farmers Market projects net sales growth of 4.5%–6.5%, comparable store sales between (1)% and 1%, EBIT of $675–$695 million, and diluted EPS of $5.32–$5.48, plus opening 40+ new stores and capital spending of $280–$310 million.
How strong is Sprouts Farmers Market’s (SFM) balance sheet and cash flow?
Sprouts ended Q1 2026 with $252 million in cash and no borrowings on its $600 million revolving credit facility. It generated $235 million in operating cash flow, spent $98 million on capital expenditures, and used $140 million to repurchase 1.9 million shares.
How will the 53rd week affect Sprouts Farmers Market’s 2026 results?
For fiscal 2026, Sprouts expects a 53rd week in Q4 to add about $200 million in sales, $28 million in income before interest and taxes, and $0.21 in diluted EPS. Management’s full-year 2026 guidance on a 52-week basis excludes this additional week.