Sprouts Farmers Market tops estimates; plans record store openings in Q3
Sprouts Farmers Market Inc. reported second-quarter earnings and sales in line with its expectations amid a “cautious” consumer environment.
The Phoenix-based natural and organic grocer opened seven stores during the quarter. It plans to ramp up its expansion in the third quarter, opening at least 15 stores, its “largest quarterly opening cadence to date,” CEO Jack Sinclair told analysts on the company’s earnings call.
“We will be opening 42 net new stores this year, slightly ahead of our original guidance,” he added. "Sprouts has more than 110 executed leases and 155 approved new stores in the pipeline."
Sprouts reported earnings per share of $1.37 for the quarter ended June 28, compared to earnings per share of $1.35 in the year-ago period. Analysts had expected earnings per share of $1.35.
Net sales rose 5% to $2.3 billion. E-commerce sales rose 12%, representing approximately 16% of the quarter’s total sales. Same-store sales inched down 1%.
“Our second-quarter results were in line with our expectations," Sinclair stated in the earnings release. “As we continue to navigate a cautious consumer environment, we are encouraged by the strong performance of our new stores and the continued success of our foraging and innovation efforts. We are focused on driving deeper customer engagement, and we are confident in our long-term growth trajectory.”
Sprouts reaffirmed its expectations for fiscal 2026, which will include a 53rd week in the fourth quarter. The company estimates the additional week will contribute about $200 million in sales, $28 million in earnings before interest and taxes, and $0.21 in diluted earnings per share.
On a comparable 52-week basis, Sprouts projects full-year net sales growth of 5.5% to 6.5%, comparable-store sales ranging from a 0.5% decline to a 0.5% increase, earnings before interest and taxes of $675 million to $685 million and diluted earnings per share of $5.32 to $5.40.
As of June 28, Sprouts has 490 stores in 25 states.
