Sprouts Farmers Market, Inc. Reports First Quarter 2026 Results

Sprouts Farmers Market, Inc. Reports First Quarter 2026 Results 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 2025Comparable 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 2025Opened 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 facilityRepurchased 1.9 millionshares of common stock for a total investment of $140 million, excluding excise taxGenerated 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 millionDiluted earnings per share: $5.32 to $5.48Unit growth: 40+ new storesCapital 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