Sprouts Farmers Market, Inc. Earnings Recaps
Q2 2026
Jul 31, 2026
Sprouts Farmers Market shares rallied 11.7% following earnings, driven by new store growth, improving e-commerce sales, and an encouraging outlook that suggests the toughest comparable store sales comps are behind the company.
Key takeaways
- Total sales rose 5% year-over-year to $2.3 billion, supported by the addition of seven new stores and a 1% decline in comparable store sales.
- E-commerce sales grew over 12%, accounting for approximately 16% of total quarterly sales, while Sprouts brand sales made up 26% of total revenue.
- Gross margin contracted slightly by 12 basis points to 38.7%, pressured by loyalty program investments and elevated fuel costs, partially offset by self-distribution efficiencies.
- SG&A expenses increased by $38 million, reflecting deleverage from lower comps and ongoing investments, despite disciplined cost management efforts.
- Management updated guidance for 2026 with total sales growth of 5.5% to 6.5% and comps between -0.5% to +0.5%, noting gradual improvement in customer engagement as the year progresses.
Q1 2026
Apr 30, 2026
Sprouts Farmers Market shares surged 15.7% following first quarter results, with investors responding favorably to a notable upside in earnings guidance and resilient sales growth despite negative comparable sales. Management also raised the full-year EPS outlook, supporting the post-earnings rally.
Key takeaways
- Net sales grew 4% year-over-year to $2.3 billion, driven by strong new store performance, while comparable store sales declined 1.7%.
- E-commerce sales increased 10% and made up 16% of total sales; Sprouts private label accounted for more than 26% of sales.
- Gross margin contracted 20 basis points to 39.4%, primarily due to planned loyalty investments and higher shrink, partially offset by self-distribution benefits.
- Operating discipline continued, with $235 million in operating cash flow and $140 million returned to shareholders via repurchases.
- Management lifted full-year diluted EPS guidance, now expecting $5.32–$5.48 (up from prior outlook), while maintaining targets for sales growth (4.5%–6.5%) and plans to open at least 40 new stores in 2026.