Sprouts Farmers Market, Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 29 October 2025: press release. Guidance figures: 1 raised, 3 lowered, 2 new, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net sales rose 13%: Net sales were $2,200,430 thousand against $1,945,735 thousand a year earlier, a 13% increase. Source
• Comparable store sales growth was 5.9%: Comparable store sales growth was 5.9%. The prior release reported 10.2% comparable growth for the second quarter. Source
• Diluted EPS reached $1.22: Diluted earnings per share were $1.22 for the quarter, against $0.91 in the same period of 2024. Source
• Nine stores opened in third quarter: The company opened 9 new stores in the quarter, bringing the count to 464 stores in 24 states as of September 28, 2025. Source
• Cash from operations reached $577 million: Cash from operations was $577 million year-to-date. Capital expenditures were $194 million, net of landlord reimbursement, year-to-date. Source
• Year-to-date share repurchases $341,925 thousand: Repurchases of common stock totaled $341,925 thousand year-to-date, against $129,698 thousand a year earlier. Source

“We are opening stores nationwide, and our strategy continues to resonate with our target customers, resulting in strong third quarter performance,”

Jack Sinclair, chief executive officer of Sprouts Farmers Market

Guidance

What changed from last quarter

• Guidance lowered: Full-year net sales growth and comparable store sales growth guidance were lowered from the prior ranges. Source
• Guidance lowered: Full-year EBIT guidance top end was lowered from $690 million to $680 million. Source
• Guidance raised: Full-year unit growth guidance rose from at least 35 new stores to 37 new stores. Source
• New guidance: Fourth-quarter 2025 guidance for comparable store sales growth and diluted EPS was given for the first time in this release. Source
• Guidance kept: Full-year capital expenditures guidance, net of landlord reimbursements, stayed at $230 million to $250 million. Source
• New: A new $600 million credit facility was entered into. The prior release described a $700 million revolving credit facility, and the new facility has substantially similar terms. Source
• New: A new $1 billion share repurchase program was authorized during the quarter. Source

Sales and comparable store growth

• Net sales rose 13%: Net sales were $2,200,430 thousand against $1,945,735 thousand a year earlier, a 13% increase. Source
• Comparable store sales growth was 5.9%: Comparable store sales growth was 5.9%. The prior release reported 10.2% comparable growth for the second quarter. Source
• Third-quarter comparable range set earlier: The prior release had given a third-quarter comparable store sales growth range of 6.0% to 8.0%. Reported growth was 5.9%.
• Year-to-date net sales higher: Thirty-nine week net sales were $6,657,468 thousand against $5,723,062 thousand a year earlier. Source

Earnings per share and profit

• Diluted EPS reached $1.22: Diluted earnings per share were $1.22 for the quarter, against $0.91 in the same period of 2024. Source
• Net income higher than a year earlier: Net income was $120,116 thousand against $91,610 thousand a year earlier. Source
• EBIT higher than a year earlier: EBIT was $157,398 thousand for the quarter, against $122,451 thousand a year earlier. Source
• Income tax provision higher: The income tax provision was $37,972 thousand against $31,902 thousand a year earlier. Source
• Year-to-date diluted EPS higher: Thirty-nine week diluted EPS was $4.38 against $2.97 a year earlier. Source

“Our passionate team members, financial foundation, and disciplined execution will position us to deliver sustainable earnings growth, as we navigate strong year-over-year comparisons.”

Jack Sinclair, chief executive officer of Sprouts Farmers Market

Costs and gross profit

• Gross profit higher than a year earlier: Cost of sales was $1,349,379 thousand against $1,204,812 thousand. Gross profit was $851,051 thousand against $740,923 thousand. Source
• SG&A expenses higher than a year earlier: Selling, general and administrative expenses were $653,329 thousand against $580,332 thousand a year earlier. Source
• Store closure costs lower than a year earlier: Store closure and other costs, net were $1,462 thousand for the quarter, against $3,732 thousand a year earlier. Source

Store openings and footprint

• Nine stores opened in third quarter: The company opened 9 new stores in the quarter, bringing the count to 464 stores in 24 states as of September 28, 2025. Source
• Twelve stores opened in second quarter: The prior release reported 12 new stores in the second quarter, bringing the count to 455 stores in 24 states as of June 29, 2025.
• Corporate profile store and staff figures: The corporate profile describes approximately 35,000 team members and more than 450 stores in 24 states. Source

Balance sheet and working capital

• Receivables and inventories higher: Accounts receivable were $64,848 thousand at September 28, 2025, against $30,901 thousand at December 29, 2024. Inventories were $399,938 thousand, against $343,329 thousand. Source
• Payables and accrued liabilities higher: Accounts payable were $268,330 thousand against $213,414 thousand at December 29, 2024. Accrued liabilities were $239,836 thousand against $216,842 thousand. Source
• Long-term debt rose from year-end: Long-term debt and other finance obligations were $53,423 thousand, against $7,248 thousand at December 29, 2024. Source

Cash flow and share repurchases

• Cash from operations reached $577 million: Cash from operations was $577 million year-to-date. Capital expenditures were $194 million, net of landlord reimbursement, year-to-date. Source
• Third-quarter buybacks of 0.4 million shares: In the quarter the company repurchased 0.4 million shares for $50 million, excluding excise tax. Source
• Year-to-date share repurchases $341,925 thousand: Repurchases of common stock totaled $341,925 thousand year-to-date, against $129,698 thousand a year earlier. Source
• Shares outstanding lower than December: Shares outstanding were 97,451,026 at September 28, 2025, against 99,255,036 at December 29, 2024. Source
• No revolver balance at quarter end: The company ended the quarter with $322 million in cash and cash equivalents and no balance on its $600 million revolving credit facility. Source

Figures management reported

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.