Sprouts Farmers Market (NASDAQ:SFM) Issues Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Sprouts Farmers Market beat quarterly estimates, reporting EPS of $1.37 versus the $1.34 consensus and revenue of $2.33 billion versus $2.32 billion expected. Sales rose 5%, supported by new stores and e-commerce growth of more than 12%, although comparable sales declined 1%.
• Management maintained its full-year 2026 outlook of $5.32–$5.40 EPS and 5.5%–6.5% sales growth, but expects third-quarter EBIT margin pressure from fixed-cost deleverage, fuel costs, and increased store openings.
• Expansion remains a bright spot, with 42 net new stores planned for 2026 and more than 110 executed leases in the pipeline. However, inflation and affordability concerns continue to weigh on lower-income customers and shopping frequency.

Sprouts Farmers Market (NASDAQ:SFM - Get Free Report) posted its quarterly earnings results on Wednesday. The company reported $1.37 EPS for the quarter, beating the consensus estimate of $1.34 by $0.03, FiscalAI reports. The company had revenue of $2.33 billion for the quarter, compared to analyst estimates of $2.32 billion. Sprouts Farmers Market had a net margin of 5.70% and a return on equity of 36.06%. Sprouts Farmers Market updated its Q3 2026 guidance to 1.200-1.240 EPS and its FY 2026 guidance to 5.320-5.400 EPS.

Here are the key takeaways from Sprouts Farmers Market's conference call:

• Second-quarter sales rose 5% to $2.3 billion, driven by strong new-store performance, while comparable sales declined 1%. Diluted EPS increased 1% to $1.37, and e-commerce sales grew more than 12% to approximately 16% of total sales.
• The consumer backdrop remains pressured by inflation, elevated fuel costs, and affordability concerns, with lower-engaged and lower-income customers reducing trip frequency and basket units. Affordability tests improved units but produced a slower-than-expected traffic response.
• Sprouts maintained its full-year outlook on a 52-week basis, including sales growth of 5.5%-6.5%, comps of negative 0.5% to positive 0.5%, EBIT of $675 million-$685 million, and EPS of $5.32-$5.40. Third-quarter EBIT margin is expected to decline about 50 basis points due to fixed-cost deleverage, fuel costs, and increased store openings.
• New stores continue to outperform expectations, with 42 net openings now planned for 2026 and more than 110 executed leases in the pipeline. Recent store vintages are comping positively, supporting management’s confidence in long-term expansion.
• Innovation, Sprouts brand products, e-commerce, and supply-chain initiatives remain areas of strength, while nearly 85% of stores now receive fresh meat through Sprouts distribution centers. The company also generated $369 million of year-to-date operating cash flow and repurchased $210 million of stock through the second quarter.

Sprouts Farmers Market Price Performance

SFM traded up $1.39 during trading on Wednesday, hitting $79.16. The company's stock had a trading volume of 2,524,648 shares, compared to its average volume of 2,498,508. The company has a current ratio of 0.92, a quick ratio of 0.42 and a debt-to-equity ratio of 0.07. The firm has a market capitalization of $7.44 billion, a price-to-earnings ratio of 15.22, a P/E/G ratio of 2.03 and a beta of 0.67. The business's fifty day simple moving average is $81.95 and its 200 day simple moving average is $77.94. Sprouts Farmers Market has a twelve month low of $64.75 and a twelve month high of $160.49.

Insider Activity

In other Sprouts Farmers Market news, CEO Jack Sinclair sold 10,790 shares of the company's stock in a transaction on Friday, June 5th. The shares were sold at an average price of $82.04, for a total transaction of $885,211.60. Following the completion of the transaction, the chief executive officer directly owned 269,980 shares in the company, valued at approximately $22,149,159.20. This represents a 3.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Nicholas Konat sold 12,538 shares of the stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $87.90, for a total transaction of $1,102,090.20. Following the transaction, the chief operating officer directly owned 66,119 shares in the company, valued at approximately $5,811,860.10. The trade was a 15.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 45,310 shares of company stock worth $3,873,881 in the last quarter. Corporate insiders own 1.30% of the company's stock.

Institutional Investors Weigh In On Sprouts Farmers Market

Large investors have recently bought and sold shares of the company. Laird Norton Wetherby Trust Company LLC purchased a new stake in shares of Sprouts Farmers Market during the fourth quarter worth approximately $301,000. Kestra Advisory Services LLC lifted its holdings in Sprouts Farmers Market by 29.6% in the 4th quarter. Kestra Advisory Services LLC now owns 3,665 shares of the company's stock valued at $292,000 after purchasing an additional 838 shares in the last quarter. Summit Financial LLC lifted its holdings in Sprouts Farmers Market by 56.4% in the 4th quarter. Summit Financial LLC now owns 3,583 shares of the company's stock valued at $285,000 after purchasing an additional 1,292 shares in the last quarter. Abel Hall LLC acquired a new stake in Sprouts Farmers Market during the 4th quarter worth $234,000. Finally, Beacon Pointe Advisors LLC boosted its stake in Sprouts Farmers Market by 33.2% during the 4th quarter. Beacon Pointe Advisors LLC now owns 2,650 shares of the company's stock worth $211,000 after purchasing an additional 660 shares during the last quarter.

Wall Street Analysts Forecast Growth

SFM has been the subject of several analyst reports. JPMorgan Chase & Co. boosted their price objective on Sprouts Farmers Market from $78.00 to $80.00 and gave the company a "neutral" rating in a report on Wednesday, July 22nd. Melius Research downgraded Sprouts Farmers Market from a "hold" rating to a "sell" rating and set a $70.00 price target for the company. in a report on Monday, April 6th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $114.00 price objective on shares of Sprouts Farmers Market in a research note on Monday, June 1st. UBS Group lifted their target price on shares of Sprouts Farmers Market from $75.00 to $80.00 and gave the company a "neutral" rating in a report on Wednesday, July 22nd. Finally, Evercore reiterated an "outperform" rating on shares of Sprouts Farmers Market in a research note on Monday. Seven research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Sprouts Farmers Market has an average rating of "Hold" and a consensus target price of $96.62.

About Sprouts Farmers Market

Sprouts Farmers Market, Inc NASDAQ: SFM is a specialty grocery retailer focused on fresh, natural and organic foods. Headquartered in Phoenix, Arizona, the company operates stores designed to offer an open-market shopping experience, emphasizing quality produce sourced from regional farmers alongside organic pantry staples, dairy, meat and seafood. Sprouts' product assortment also includes bulk foods, vitamins and supplements, a deli and prepared foods, reflecting its commitment to wellness and affordable healthy living.

Founded in 2002 by members of the Boney family, Sprouts began as a single farmers market in Chandler, Arizona.

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