Sprouts Farmers Market, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 29 April 2026: press release. Guidance figures: 1 raised, 2 new, 6 kept. The quarter’s numbers.

Key takeaways

Net sales rose 4% year over year: Net sales were $2.3 billion, up 4% from the same period in 2025, for the 13-week first quarter ended March 29, 2026. Source
Comparable store sales fell 1.7%: Comparable store sales were down 1.7%. Diluted EPS was $1.71, against $1.81 in the same period of 2025. Source
Gross profit rose with sales: Gross profit was $917,276 thousand, against $886,363 thousand. Cost of sales was $1,411,903 thousand, against $1,350,073 thousand. Source
Operating cash flow declined: Cash flows from operations were $235,287 thousand, against $299,089 thousand. Accounts payable added $3,147 thousand, against $54,084 thousand a year earlier. Source
Repurchased $140 million of stock: The company bought back 1.9 million shares for $140 million, excluding excise tax. The cash flow statement shows $218,762 thousand of repurchases a year earlier. Source

“The first quarter played out largely as we expected,”
Jack Sinclair, chief executive officer of Sprouts Farmers Market

Guidance

Area	Period	Figure	Against last quarter
Diluted earnings per share Source	Second quarter 2026	$1.32 to $1.36	New
Comparable store sales Source	Second quarter 2026	(2)% to 0%	New
Net sales growth Source	Full year 2026, 52-week basis	4.5% to 6.5%	Kept
Comparable store sales Source	Full year 2026	(1)% to 1%	Kept
EBIT Source	Full year 2026, 52-week basis	$675 million to $695 million	Kept
Diluted earnings per share Source	Full year 2026, 52-week basis	$5.32 to $5.48	Raised from $5.28 to $5.44
Unit growth Source	Full year 2026	40+ new stores	Kept
Capital expenditures, net of landlord reimbursements Source	Full year 2026	$280 million to $310 million	Kept
53rd week impact Source	Fiscal 2026 fourth quarter	approximately $200 million in sales, $28 million in income before interest and taxes, and $0.21 in diluted earnings per share	Kept

What changed from last quarter

Guidance raised: Full-year diluted EPS range moved to $5.32 to $5.48 from $5.28 to $5.44 in the February release. Source
New guidance: Second-quarter comparable store sales and diluted EPS guidance added; the February release covered only the first quarter. Source
Guidance kept: Full-year net sales growth, comparable store sales, EBIT, unit growth, capital expenditures and 53rd-week estimates are unchanged from the February release. Source

Quarter results and profit

Net sales rose 4% year over year: Net sales were $2.3 billion, up 4% from the same period in 2025, for the 13-week first quarter ended March 29, 2026. Source
Comparable store sales fell 1.7%: Comparable store sales were down 1.7%. Diluted EPS was $1.71, against $1.81 in the same period of 2025. Source
Operating income lower than last year: Income from operations was $215,307 thousand, against $226,332 thousand in the prior-year quarter. Source
Net income fell with fewer shares: Net income was $163,724 thousand, against $180,026 thousand. Diluted weighted shares were 95,585 thousand, against 99,719 thousand. Source

Costs, gross profit and EBITDA

Gross profit rose with sales: Gross profit was $917,276 thousand, against $886,363 thousand. Cost of sales was $1,411,903 thousand, against $1,350,073 thousand. Source
Selling and D&A costs increased: Selling, general and administrative expenses were $658,781 thousand, against $623,226 thousand. Depreciation and amortization outside cost of sales was $42,027 thousand, against $35,099 thousand. Source
EBIT and EBITDA compared with prior year: EBIT was $215,307 thousand and EBITDA was $259,583 thousand, against $226,332 thousand and $263,152 thousand. The company presents both as non-GAAP measures. Source

“We continue to focus on accelerating customer engagement, foraging and discovery, building an advantaged supply chain, and expanding access to healthy food.”
Jack Sinclair, chief executive officer of Sprouts Farmers Market

Operating cash flow and capital spending

Operating cash flow declined: Cash flows from operations were $235,287 thousand, against $299,089 thousand. Accounts payable added $3,147 thousand, against $54,084 thousand a year earlier. Source
Capital spending higher year to date: Purchases of property and equipment were $101,151 thousand, against $59,479 thousand. Net of landlord reimbursement, capital expenditures were $98 million year to date. Source
Cash held and revolver undrawn: Cash and cash equivalents were $252,161 thousand at March 29, 2026, against $257,282 thousand at year-end. The $600 million revolving credit facility had no balance. Source

Share repurchases and share count

Repurchased $140 million of stock: The company bought back 1.9 million shares for $140 million, excluding excise tax. The cash flow statement shows $218,762 thousand of repurchases a year earlier. Source
Shares outstanding declined: Shares outstanding were 94,556,903 at March 29, 2026, down from 95,926,024 at December 28, 2025. Source
Financing outflow mostly buybacks: Financing activities used $140,225 thousand, against $219,088 thousand a year earlier, almost all of it share repurchases. Source

Balance sheet and leases

Lease assets and liabilities grew: Operating lease assets were $1,756,367 thousand, from $1,652,732 thousand. Long-term operating lease liabilities rose to $1,775,890 thousand from $1,682,425 thousand. Source
Accrued tax and salaries shifted: Accrued income tax was $16,396 thousand, against nil at year-end. Accrued salaries and benefits fell to $61,461 thousand from $96,017 thousand. Source
Payables lower than year-end: Accounts payable were $260,737 thousand at March 29, 2026, against $291,033 thousand at December 28, 2025. Source

Strategy and company profile

Specialty fresh and natural retailer: The company describes itself as one of the largest and fastest growing specialty retailers of fresh, natural and organic food in the United States. Source
Produce anchors the store format: The company says fresh produce sits at the heart of the store, with discoveries for every dietary lifestyle. Source
Curated assortment of natural products: The assortment is described as curated, with products that inspire wellness naturally, including organic, gluten-free, plant-based and non-GMO favorites. Source
Workforce of more than 36,000: The company employs more than 36,000 team members and operates more than 480 stores in 25 states, headquartered in Phoenix. Source

Coming up, as management said on 29 April 2026

Sequential improvement expected in 2026: Management expects sequential improvement in the business throughout 2026 as it reaccelerates growth. Source

Figures management reported

Figure	Reported
Comparable store sales Source	(1.7)%
Inventory Source	$419,178 thousand at March 29, 2026 (from $427,095 thousand at December 28, 2025)
Store openings Source	6 new stores; 483 stores in 25 states

Earlier plans management reported on

Not stated: The February release gave these first-quarter ranges. This release does not state whether the quarter met them.
Not stated: In February the chief financial officer, Curtis Valentine, said challenges were expected in 2026, especially in the first half. This release does not restate that view.

Other quarters

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.

As filed with the SEC

Open the filing on EDGAR

Sprouts Farmers Market, Inc. Reports First Quarter 2026 Results

PHOENIX, Ariz. - (Business Wire) - April 29, 2026 - 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 2025
Comparable 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 2025
Opened 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 facility
Repurchased 1.9 million shares of common stock for a total investment of $140 million, excluding excise tax
Generated 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 million
Diluted earnings per share: $5.32 to $5.48
Unit growth: 40+ new stores
Capital 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

Forward-looking statements notice

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, Inc

Phoenix, AZ

4/29/26

Contacts
Susannah Livingston · (602) 682-1584 · susannahlivingston@sprouts.com
media@sprouts.com