Sprouts Farmers Market Inc
NASDAQ:SFM

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Sprouts Farmers Market Inc Logo
Sprouts Farmers Market Inc
NASDAQ:SFM
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Price: 85.25 USD 0.18% Market Closed
Market Cap: 8.3B USD

Sprouts Farmers Market Inc
Investor Relations

Sprouts Farmers Market Inc., a vibrant player in the grocery retail sector, is deeply embedded in the movement towards healthy living and sustainable food consumption. Established in 2002 in Chandler, Arizona, Sprouts has grown from a small fruit stand to a significant force in natural and organic groceries across the United States. The company has capitalized on the increasing consumer demand for fresh, minimally processed food, expanding its stores across a broad geographical footprint while maintaining a focus on affordability. A trip to a Sprouts location is designed to connect the urban consumer with farm-fresh products: the aisles are brimming with produce, natural meats, and organic dairy, supported by a commitment to health-oriented customer education through in-store events and nutritional expertise.

The financial engine of Sprouts is driven by its ability to curate an assortment of niche products while still maintaining competitive pricing. Its strategic store layouts maximize efficient space usage, house a variety of private-label brands, and feature bulk sections that encourage shoppers to buy only what they need. This model not only appeals to the eco-conscious but also enhances profit margins by reducing costs associated with packaging and distribution. Additionally, Sprouts leverages a direct-to-consumer approach through community involvement and digital platforms, catering to the modern shopper's preference for convenient, on-demand information and shopping experiences. This strategic blend of operational efficiency, customer engagement, and a strong brand ethos focused on health and sustainability paves the way for its ongoing success in the retail market.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Oct 29, 2025
AI Summary
Q3 2025

Earnings Growth: Sprouts delivered strong Q3 earnings growth, with diluted EPS up 34% year-on-year.

Sales & Comps: Total sales grew 13% to $2.2 billion, driven by a 5.9% increase in comparable store sales, though comps moderated faster than expected late in the quarter.

Gross Margin: Gross margin improved by 60 basis points to 38.7%, mainly due to better inventory management and reduced shrink.

Guidance Update: Full-year sales growth is expected at approximately 14%, with earnings per share between $5.24 and $5.28. Q4 comp sales are guided to a range of 0% to 2%.

Store Expansion: Sprouts plans to open 37 new stores in 2025, exceeding prior expectations, and aims for 10% unit growth in 2027.

Loyalty Program: The Sprouts Rewards loyalty program has fully launched nationwide, with early signs of increased customer frequency and spending.

Consumer Softness: Management cited a softer consumer environment and tough prior year comparisons as headwinds, particularly in middle-income and younger demographics.

Share Repurchases: $342 million of shares were repurchased YTD, with $966 million remaining under a new $1 billion authorization.

Key Financials
Total Sales
$2.2B
Comparable Store Sales
5.9%
Gross Margin
38.7%
SG&A Expense
$653M
Depreciation and Amortization
$39M
Earnings Before Interest and Taxes (EBIT)
$157M
Net Income
$120M
Earnings Per Share (Diluted)
$1.22
Operating Cash Flow (YTD)
$577M
Capital Expenditures (YTD, net of landlord reimbursements)
$194M
Share Repurchases (YTD)
$342M
Stores Opened in Q3
9
Total Stores (end of Q3)
464
E-commerce Sales
15.5% of total sales
Sprouts Brand Sales Penetration
Over 25% of total sales
Cash and Cash Equivalents (end of Q3)
$322M
Share Repurchase Authorization Remaining
$966M
Effective Tax Rate
24%
Earnings Call Recording
Other Earnings Calls

Management

Mr. Jack L. Sinclair
CEO & Director
No Bio Available
Mr. Nicholas Konat
President & COO
No Bio Available
Mr. Brandon F. Lombardi Esq., J.D.
Chief Legal & Sustainability Officer and Corporate Secretary
No Bio Available
Mr. J. Scott Neal
Chief Merchandising Officer
No Bio Available
Mr. Curtis Valentine
Chief Financial Officer
No Bio Available
Mr. Stacy W. Hilgendorf
VP, Controller & Principal Accounting Officer
No Bio Available
Mr. James H. Bahrenburg
Chief Technology Officer
No Bio Available
Ms. Susannah Livingston
Vice President of Investor Relations & Treasury
No Bio Available
Ms. Alisa Gmelich
Senior VP & Chief Marketing Officer
No Bio Available
Ms. Timmi Zalatoris
Chief Human Resources Officer
No Bio Available

Contacts

Address
ARIZONA
Phoenix
5455 E High St Ste 111
Contacts
+14808148016.0
www.sprouts.com