Sprouts Farmers Market, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 29 July 2026: press release. Guidance figures: 3 raised, 2 lowered, 2 new, 1 kept. The quarter’s numbers.

Key takeaways

Net sales grew 5% to $2.3 billion: Net sales were $2.3 billion for the 13 weeks ended June 28, 2026, up 5% from the same period in 2025. Net income was $129.2 million, against $133.7 million a year earlier. Source
Diluted EPS rose to $1.37: Diluted earnings per share were $1.37, compared with $1.35 a year earlier. For the 26 weeks, diluted EPS was $3.08, against $3.16. Source
Seven stores opened in the quarter: The company opened seven new stores, bringing the count to 490 in 25 states, up from 483 at March 29, 2026. Source
Cautious consumer environment noted: Management described navigating a cautious consumer environment during the quarter. The release gives no traffic or average ticket figures. Source
Operating cash flow was lower: Cash from operations was $369.0 million for the 26 weeks, against $410.3 million a year earlier, per the cash flow statement. Source
Cash and undrawn revolver at quarter end: Cash and cash equivalents ended the quarter at $224 million. The $600 million revolving credit facility had a zero balance. Source
Third-quarter ranges given: The release gives third-quarter comparable store sales and diluted EPS ranges. The prior release gave second-quarter ranges, which the reported results replace. Source
Full-year EBIT and EPS top ends lowered: Full-year EBIT range is $675 million to $685 million, against $675 million to $695 million. Diluted EPS range is $5.32 to $5.40, against $5.32 to $5.48. Source

“Our second-quarter results were in line with our expectations,”
Jack Sinclair, chief executive officer of Sprouts Farmers Market

Guidance

Area	Period	Figure	Against last quarter
Diluted EPS (third quarter) Source	third quarter 2026	$1.20 to $1.24	New
Comparable store sales (third quarter) Source	third quarter 2026	(0.5)% to 1.5%	New
Net sales growth Source	full year 2026 (52-week basis)	5.5% to 6.5%	Raised from 4.5% to 6.5%
Comparable store sales Source	full year 2026 (52-week basis)	(0.5)% to 0.5%
EBIT Source	full year 2026 (52-week basis)	$675 million to $685 million	Lowered from $675 million to $695 million
Diluted EPS Source	full year 2026 (52-week basis)	$5.32 to $5.40	Lowered from $5.32 to $5.48
53rd week impact Source	fourth quarter 2026	approximately $200 million in sales; $28 million in income before interest and taxes; $0.21 in diluted EPS	Kept
Unit growth Source	full year 2026	42 net new stores	Raised from 40+ new stores
Capital expenditures (net of landlord reimbursements) Source	full year 2026	~$310 million	Raised from $280 million to $310 million

What changed from last quarter

Guidance raised: Full-year net sales growth low end raised to 5.5% from 4.5%. Source
Guidance lowered: Full-year EBIT top end lowered to $685 million from $695 million. Source
Guidance lowered: Full-year diluted EPS top end lowered to $5.40 from $5.48. Source
New guidance: Third-quarter comparable store sales and diluted EPS ranges given for the first time in these releases. Source
Guidance kept: 53rd-week estimates of about $200 million in sales, $28 million in EBIT and $0.21 in diluted EPS are the same as before. Source
Ended: Second-quarter guidance from the first-quarter release (comparable store sales and diluted EPS ranges) is superseded by the reported second-quarter results.
Guidance raised: Full-year capital expenditures set at about $310 million, against a prior $280 million to $310 million range. Source
Guidance raised: Full-year unit growth set at 42 net new stores, against the prior 40 or more. Source

Second-quarter results and growth

Net sales grew 5% to $2.3 billion: Net sales were $2.3 billion for the 13 weeks ended June 28, 2026, up 5% from the same period in 2025. Net income was $129.2 million, against $133.7 million a year earlier. Source
Diluted EPS rose to $1.37: Diluted earnings per share were $1.37, compared with $1.35 a year earlier. For the 26 weeks, diluted EPS was $3.08, against $3.16. Source
Operating income declined about 3%: Income from operations was $174.2 million, against $179.4 million. Store closure and other costs were $0.8 million, against $1.5 million. Source
First-half sales rose to $4.65 billion: Net sales for the 26 weeks were $4.65 billion, against $4.46 billion, with net income of $292.9 million against $313.7 million. Source

New stores and product innovation

Seven stores opened in the quarter: The company opened seven new stores, bringing the count to 490 in 25 states, up from 483 at March 29, 2026. Source
New stores and foraging cited: Management cited the performance of new stores and the continued success of its foraging and innovation efforts as points in the quarter. Source
Focus on deeper customer engagement: Management said it is focused on driving deeper customer engagement. The first-quarter release had named accelerating customer engagement as a priority. Source
Footprint and team size described: The company describes itself as employing more than 36,000 team members and operating more than 480 stores in 25 states. Source

“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.”
Jack Sinclair, chief executive officer of Sprouts Farmers Market

Costs and margins

Gross profit rose with sales: Gross profit was $900.6 million, against $862.6 million, on higher net sales. Cost of sales was $1,425.2 million, against $1,358.0 million. Source
SG&A expense grew faster than sales: Selling, general and administrative expenses were $682.6 million, against $645.1 million. Computed from the statement of income, that is about 29.4% of net sales against 29.1%. Source
EBITDA rose slightly: EBITDA was $219.8 million for the quarter, against $217.8 million. Depreciation and amortization outside cost of sales was $43.1 million, against $36.6 million. Source

Demand and comparable sales

Comparable sales declined in quarter: Comparable store sales fell in the quarter, as reported in the highlights. The company also reported diluted EPS for the same period. Source
Cautious consumer environment noted: Management described navigating a cautious consumer environment during the quarter. The release gives no traffic or average ticket figures. Source

“We are focused on driving deeper customer engagement, and we are confident in our long-term growth trajectory.”
Jack Sinclair, chief executive officer of Sprouts Farmers Market

Cash flow, capital and buybacks

Operating cash flow was lower: Cash from operations was $369.0 million for the 26 weeks, against $410.3 million a year earlier, per the cash flow statement. Source
Investing outflows rose year to date: Purchases of property and equipment were $189.9 million year to date, against $120.3 million. The company reported capital expenditures net of landlord reimbursement at $186 million. Source
Second-quarter buybacks: The company repurchased 0.9 million shares for $70 million in the quarter, excluding excise tax. First-quarter repurchases were 1.9 million shares for $140 million. Source
Year-to-date repurchases and excise tax: Year-to-date repurchases of common stock were $210.0 million, against $292.2 million. Excise tax paid on repurchases was $4.2 million, against $2.1 million. Source
Shares outstanding fell: Shares outstanding were 93,721,860 at June 28, 2026, against 95,926,024 at December 28, 2025. Source

Balance sheet and liquidity

Cash and undrawn revolver at quarter end: Cash and cash equivalents ended the quarter at $224 million. The $600 million revolving credit facility had a zero balance. Source
Long-term debt and finance obligations rose: Long-term debt and other finance obligations were $110.8 million at June 28, 2026, against $81.6 million at December 28, 2025. Source
Operating lease liabilities grew: Long-term operating lease liabilities were $1.81 billion at June 28, 2026, against $1.68 billion at December 28, 2025. Source
Inventory and payables at quarter end: Inventories were $436.8 million, against $427.1 million at year-end. Accounts payable were $272.3 million, against $291.0 million. Source

Guidance for third quarter and year

Third-quarter ranges given: The release gives third-quarter comparable store sales and diluted EPS ranges. The prior release gave second-quarter ranges, which the reported results replace. Source
Full-year EBIT and EPS top ends lowered: Full-year EBIT range is $675 million to $685 million, against $675 million to $695 million. Diluted EPS range is $5.32 to $5.40, against $5.32 to $5.48. Source
53-week year adds a fourth-quarter week: Fiscal 2026 will have 53 weeks, with the extra week in the fourth quarter. The company estimated its effect on sales, EBIT and diluted EPS. Source

Strategy and people

Team thanked for execution: The chief executive thanked the team for its dedication, execution and commitment to serving customers every day. Source
Priorities set in first-quarter release: The first-quarter release listed accelerating customer engagement, foraging and discovery, an advantaged supply chain and access to healthy food as focus areas.
Foraging central to store model: The corporate profile says fresh produce sits at the heart of the store and that the company offers a curated assortment of products. Source

Coming up, as management said on 29 July 2026

Extra week falls in fourth quarter: Fiscal 2026 will have 53 weeks, with the extra week in the fourth quarter of the year. Source

Figures management reported

Figure	Reported
Comparable store sales Source	(1.0)% in the second quarter
Store openings and store count Source	7 opened in the quarter; 490 stores in 25 states at June 28, 2026
Gross margin Source	about 38.7% of net sales (computed)
Inventory Source	$436.8 million at June 28, 2026

Risks management discussed

Demand: Management cited a cautious consumer environment as the backdrop for the quarter. Source

Earlier plans management reported on

Not stated: The first-quarter release expected sequential improvement in the business through 2026. The second-quarter release does not restate this expectation.
Met: Management said second-quarter results were in line with its expectations. Source

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 Second Quarter 2026 Results

PHOENIX, Ariz. - (Business Wire) - July 29, 2026 - Sprouts Farmers Market, Inc. (Nasdaq: SFM) today reported results for the 13-week second quarter ended June 28, 2026.

“Our second-quarter results were in line with our expectations," said Jack Sinclair, chief executive officer of Sprouts Farmers Market. “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. I want to thank the team for their continued dedication, strong execution and commitment to serving our customers every day.”

Second Quarter Highlights:

Net sales totaled $2.3 billion; a 5% increase from the same period in 2025
Comparable store sales of (1.0)%
Diluted earnings per share of $1.37; compared to diluted earnings per share of $1.35 in the same period in 2025
Opened 7 new stores, resulting in 490 stores in 25 states as of June 28, 2026

Leverage and Liquidity in Second Quarter 2026

Ended the quarter with $224 million in cash and cash equivalents and zero balance on our $600 million revolving credit facility
Repurchased 0.9 million shares of common stock for a total investment of $70 million, excluding excise tax
Generated cash from operations of $369 million and invested $186 million in capital expenditures, net of landlord reimbursement, year-to-date through June 28, 2026

Third Quarter and Full-Year 2026 Outlook

The following provides information on our third quarter 2026 outlook:

Comparable store sales: (0.5)% to 1.5%
Diluted earnings per share: $1.20 to $1.24

The Company notes that 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: 5.5% to 6.5%
Comparable store sales: (0.5)% to 0.5%
EBIT: $675 million to $685 million
Diluted earnings per share: $5.32 to $5.40
Unit growth: 42 net new stores
Capital expenditures (net of landlord reimbursements): ~$310 million

Second Quarter 2026 Conference Call

Sprouts will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, July 29, 2026, during which Sprouts executives will further discuss second 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 July 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				Twenty-six weeks ended
	June 28, 2026		June 29, 2025		June 28, 2026		June 29, 2025
Net sales	$2,325,804		$2,220,602		$4,654,983		$4,457,038
Cost of sales	1,425,156		1,358,002		2,837,059		2,708,075
Gross profit	900,648		862,600		1,817,924		1,748,963
Selling, general and administrative expenses	682,633		645,127		1,341,414		1,268,353
Depreciation and amortization (exclusive of depreciation included in cost of sales)	43,081		36,606		85,108		71,705
Store closure and other costs, net	760		1,511		1,921		3,217
Income from operations	174,174		179,356		389,481		405,688
Interest expense/(income), net	68		(431)		(61)		(1,355)
Income before income taxes	174,106		179,787		389,542		407,043
Income tax provision	44,911		46,084		96,623		93,314
Net income	$129,195		$133,703		$292,919		$313,729
Net income per share:
Basic	$1.37		$1.37		$3.10		$3.19
Diluted	$1.37		$1.35		$3.08		$3.16
Weighted average shares outstanding:
Basic		93,988		97,858		94,401		98,198
Diluted		94,410		98,774		94,995		99,259

SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

	June 28, 2026	December 28, 2025
ASSETS
Current assets:
Cash and cash equivalents	$223,928	$257,282
Accounts receivable, net	65,522	65,221
Inventories	436,814	427,095
Prepaid expenses and other current assets	44,563	60,306
Total current assets	770,827	809,904
Property and equipment, net of accumulated depreciation	1,184,636	1,085,356
Operating lease assets, net	1,763,052	1,652,732
Intangible assets	208,215	208,215
Goodwill	381,750	381,750
Other assets	23,156	20,692
Total assets	$4,331,636	$4,158,649
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$272,314	$291,033
Accrued liabilities	252,191	304,419
Accrued salaries and benefits	70,479	96,017
Current portion of operating lease liabilities	179,295	177,263
Current portion of finance lease and other finance obligations	3,025	2,071
Total current liabilities	777,304	870,803
Long-term operating lease liabilities	1,813,174	1,682,425
Long-term debt and other finance obligations	110,799	81,585
Other long-term liabilities	43,801	40,283
Deferred income tax liability	85,690	80,479
Total liabilities	2,830,768	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, 93,721,860 shares issued and outstanding, June 28, 2026; 95,926,024 shares issued and outstanding, December 28, 2025	94	96
Additional paid-in capital	858,532	841,848
Retained earnings	642,242	561,130
Total stockholders’ equity	1,500,868	1,403,074
Total liabilities and stockholders’ equity	$4,331,636	$4,158,649

SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(IN THOUSANDS)

	Twenty-six weeks ended
	June 28, 2026	June 29, 2025
Operating activities
Net income	$292,919	$313,729
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	89,951	75,264
Operating lease asset amortization	79,564	70,568
Share-based compensation	15,667	14,403
Deferred income taxes	5,210	2,941
Other non-cash items	2,282	2,712
Changes in operating assets and liabilities:
Accounts receivable	6,327	21,227
Inventories	(9,719)	(7,782)
Prepaid expenses and other current assets	15,694	(719)
Other assets	(2,334)	(2,529)
Accounts payable	14,523	5,664
Accrued liabilities	(58,209)	10,108
Accrued salaries and benefits	(25,537)	(12,877)
Operating lease liabilities	(63,548)	(83,113)
Other long-term liabilities	6,205	741
Cash flows from operating activities	368,995	410,337
Investing activities
Purchases of property and equipment	(189,907)	(120,319)
Cash flows used in investing activities	(189,907)	(120,319)
Financing activities
Payments on finance lease liabilities	(309)	(644)
Repurchase of common stock	(209,999)	(292,223)
Payments of excise tax on repurchases of common stock	(4,172)	(2,091)
Proceeds from exercise of stock options	1,017	1,224
Cash flows used in financing activities	(213,463)	(293,734)
Decrease in cash, cash equivalents, and restricted cash	(34,375)	(3,716)
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	$226,519	$263,497

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 (income) expense, net, provision for income tax, and depreciation, amortization and accretion. The company defines EBIT as net income before interest (income) expense, net 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 and twenty-six weeks ended June 28, 2026 and June 29, 2025:

SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

NON-GAAP MEASURE RECONCILIATION

(UNAUDITED)

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

	Thirteen weeks ended		Twenty-six weeks ended
	June 28, 2026	June 29, 2025	June 28, 2026	June 29, 2025
Net income	$129,195	$133,703	$292,919	$313,729
Income tax provision	44,911	46,084	96,623	93,314
Interest (income) expense, net	68	(431)	(61)	(1,355)
Earnings before interest and taxes (EBIT)	174,174	179,356	389,481	405,688
Depreciation, amortization and accretion	45,675	38,444	89,951	75,264
EBITDA	$219,849	$217,800	$479,432	$480,952

Source: Sprouts Farmers Market, Inc.

Phoenix, AZ

7/29/26

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