Sprouts Farmers Market(SFM) - 2026 Q2 - Quarterly Results

Sprouts Farmers Market Q2 2025 Earnings Release Second Quarter 2025 Performance Highlights Sprouts Farmers Market reported strong Q2 2025 results, with net sales increasing 17% to $2.2 billion, comparable store sales up 10.2%, and diluted EPS reaching $1.35 Q2 2025 Key Financial Highlights | Metric | Q2 2025 | Change vs Q2 2024 | | :--- | :--- | :--- | | Net Sales | $2.2 billion | +17% | | Comparable Store Sales Growth | 10.2% | N/A | | Diluted Earnings Per Share | $1.35 | +43.6% (from $0.94) | - Opened 12 new stores during the quarter, bringing the total to 455 stores across 24 states[5] - Maintained a strong balance sheet with $261 million in cash and cash equivalents and zero balance on its $700 million revolving credit facility[5] - Returned capital to shareholders by repurchasing 0.5 million shares of common stock for $73 million[5] Financial Outlook for 2025 The company projects positive financial performance for 2025, with Q3 comparable store sales growth of 6.0-8.0% and full-year net sales growth of 14.5-16.0%, alongside plans to open at least 35 new stores Q3 2025 Outlook | Metric | Guidance | | :--- | :--- | | Comparable Store Sales Growth | 6.0% to 8.0% | | Diluted Earnings Per Share | $1.12 to $1.16 | Full-Year 2025 Outlook | Metric | Guidance | | :--- | :--- | | Net Sales Growth | 14.5% to 16.0% | | Comparable Store Sales Growth | 7.5% to 9.0% | | EBIT | $675 million to $690 million | | Diluted Earnings Per Share | $5.20 to $5.32 | | New Store Openings | At least 35 | | Capital Expenditures (Net) | $230 million to $250 million | Corporate Profile and Strategy CEO Jack Sinclair attributes strong performance to strategic investments and customer focus, positioning Sprouts as a leading specialty retailer of fresh, natural, and organic foods with over 450 stores - CEO Jack Sinclair highlighted investments in operations, self-distribution, customer personalization, and team member development as drivers for future growth[3] - Sprouts operates over 450 stores in 24 states, establishing itself as a leading and rapidly growing specialty retailer of fresh, natural, and organic food in the U.S[10] Consolidated Financial Statements (Unaudited) Consolidated Statements of Income For Q2 2025, net sales increased 17.3% to $2.22 billion, gross profit rose to $862.6 million, and net income grew 40.3% to $133.7 million, yielding a diluted EPS of $1.35 Q2 2025 vs Q2 2024 Income Statement Highlights (in thousands) | Metric | Thirteen Weeks Ended June 29, 2025 | Thirteen Weeks Ended June 30, 2024 | | :--- | :--- | :--- | | Net Sales | $2,220,602 | $1,893,519 | | Gross Profit | $862,600 | $718,365 | | Income from Operations | $179,356 | $127,317 | | Net Income | $133,703 | $95,289 | | Diluted EPS | $1.35 | $0.94 | Consolidated Balance Sheets As of June 29, 2025, total assets reached $3.78 billion, total liabilities were $2.43 billion, and total stockholders' equity stood at $1.36 billion Balance Sheet Highlights (in thousands) | Metric | June 29, 2025 | December 29, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $261,404 | $265,159 | | Total current assets | $709,328 | $675,520 | | Total assets | $3,783,228 | $3,640,699 | | Total current liabilities | $720,987 | $679,968 | | Total liabilities | $2,426,728 | $2,318,806 | | Total stockholders' equity | $1,356,500 | $1,321,893 | Consolidated Statements of Cash Flows For the first twenty-six weeks of 2025, operating cash flow was $410.3 million, with $120.3 million invested in property and equipment and $292.2 million used for common stock repurchases Cash Flow Summary for Twenty-Six Weeks Ended (in thousands) | Metric | June 29, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cash flows from operating activities | $410,337 | $311,295 | | Cash flows used in investing activities | ($120,319) | ($108,925) | | Cash flows used in financing activities | ($293,734) | ($226,765) | | Repurchase of common stock | ($292,223) | ($104,488) | Non-GAAP Financial Measures Reconciliation of Net Income to EBIT and EBITDA The company utilizes non-GAAP measures EBIT and EBITDA to assess performance, with Q2 2025 EBIT increasing to $179.4 million and EBITDA growing to $217.8 million - EBIT is defined as net income before interest expense and income tax, while EBITDA is net income before interest, taxes, depreciation, amortization, and accretion[18] Reconciliation to EBIT and EBITDA for Q2 (in thousands) | Metric | Thirteen Weeks Ended June 29, 2025 | Thirteen Weeks Ended June 30, 2024 | | :--- | :--- | :--- | | Net Income | $133,703 | $95,289 | | EBIT | $179,356 | $127,317 | | EBITDA | $217,800 | $160,551 | Additional Information Conference Call Information Sprouts scheduled a conference call for July 30, 2025, at 5:00 p.m. ET to discuss Q2 2025 results, with webcast and replay available on its investor relations website - A conference call to discuss Q2 2025 financial results was scheduled for July 30, 2025, with a webcast available on the investor relations webpage[6] Forward-Looking Statements The report contains forward-looking statements, including financial outlooks, which are subject to significant risks and uncertainties that may cause actual results to differ materially - The company's projected financial expectations are not guaranteed and are subject to significant economic, competitive, and other uncertainties[8] - Forward-looking statements, including outlook and strategy, involve risks that may cause actual results to differ, as detailed in SEC filings like Form 10-K and 10-Q[9]