Sprouts Farmers Market, Inc. (SFM): Results of Operations and Financial Condition
Sprouts Farmers Market, Inc. (SFM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Investor Contact: Media Contact: Susannah Livingston media@sprouts.com (602) 682-1584 susannahlivingston@sprouts.com Sprouts Farmers Market, Inc. Reports Second Quarter 2026 Results PHOENIX, Ariz. – (Business Wire) – July 29, 2026 – Sprouts Farmers Market, Inc. (Nasd
How this was made
The 30-second read
Why it matters
The key tradable inputs are the Q3 comparable-store-sales range (-0.5% to 1.5%) and EPS range ($1.20 to $1.24), plus full-year 2026 (52-week basis) net sales growth (5.5% to 6.5%) and diluted EPS ($5.32 to $5.40), including an estimated 53rd-week impact.
Market read
Guidance updates can drive estimate revisions for forward EPS and comps, especially given the quantified 53-week-year effect.
What to watch
The 53-week-year adjustment (about $200M sales and $0.21 diluted EPS) may complicate year-over-year comparisons; traders should normalize for the extra week when benchmarking margins and growth.
Sprouts Farmers Market, Inc. Reports Second Quarter 2026 Results
Net sales increased 5% and new-store expansion continued, but comparable store sales were (1.0)% and income from operations and net income were below the same period in 2025.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $ 2,325,804 (in thousands) | – | 5% |
| Comparable store salesother | (1.0)% | – | – |
| Cost of salesGAAP | 1,425,156 (in thousands) | – | – |
| Gross profitGAAP | 900,648 (in thousands) | – | – |
| Selling, general and administrative expensesGAAP | 682,633 (in thousands) | – | – |
| Depreciation and amortization (exclusive of depreciation included in cost of sales)GAAP | 43,081 (in thousands) | – | – |
| Store closure and other costs, netGAAP | 760 (in thousands) | – | – |
| Income from operationsGAAP | 174,174 (in thousands) | – | – |
| Interest expense/(income), netGAAP | 68 (in thousands) | – | – |
| Income before income taxesGAAP | 174,106 (in thousands) | – | – |
| Income tax provisionGAAP | 44,911 (in thousands) | – | – |
| Net incomeGAAP | $ 129,195 (in thousands) | – | – |
| Basic earnings per shareGAAP | $ 1.37 | – | – |
| Diluted earnings per shareGAAP | $ 1.37 | – | – |
| Weighted average shares outstanding, basicGAAP | 93,988 (in thousands) | – | – |
| Weighted average shares outstanding, dilutedGAAP | 94,410 (in thousands) | – | – |
| Net sales, twenty-six weeks endedGAAP | $ 4,654,983 (in thousands) | – | – |
| Income from operations, twenty-six weeks endedGAAP | 389,481 (in thousands) | – | – |
| Net income, twenty-six weeks endedGAAP | $ 292,919 (in thousands) | – | – |
| Diluted earnings per share, twenty-six weeks endedGAAP | $ 3.08 | – | – |
third quarter 2026 and full year 2026 outlook
- NoteThird quarter 2026 comparable store sales: (0.5)% to 1.5%
- NoteThird quarter 2026 diluted earnings per share: $1.20 to $1.24
- NoteFull year 2026 net sales growth: 5.5% to 6.5%
- NoteFull year 2026 comparable store sales: (0.5)% to 0.5%
- NoteFull year 2026 EBIT: $675 million to $685 million
- NoteFull year 2026 diluted earnings per share: $5.32 to $5.40
- NoteFull year 2026 unit growth: 42 net new stores
- NoteFull year 2026 capital expenditures (net of landlord reimbursements): ~$310 million
- NoteFiscal year 2026 will be a 53-week year, with the extra week falling in the fourth quarter
- NoteEstimated impact from the 53rd week: approximately $200 million in sales, $28 million in income before interest and taxes, and $0.21 in diluted earnings per share
Capital returns
- Repurchased 0.9 million shares of common stock for a total investment of $70 million, excluding excise tax
- Repurchase of common stock: (209,999) (in thousands) for the twenty-six weeks ended June 28, 2026
- Payments of excise tax on repurchases of common stock: (4,172) (in thousands) for the twenty-six weeks ended June 28, 2026
What drove it
- Opened 7 new stores, resulting in 490 stores in 25 states as of June 28, 2026
- Management cited strong performance of new stores.
- Management cited continued success of its foraging and innovation efforts.
- Management is focused on driving deeper customer engagement.
Concerns
- Comparable store sales were (1.0)%.
- Management described a cautious consumer environment.
- Income from operations was 174,174 (in thousands), compared with 179,356 (in thousands) in the same period in 2025.
- Net income was $ 129,195 (in thousands), compared with $ 133,703 (in thousands) in the same period in 2025.
- Third quarter 2026 comparable store sales outlook is (0.5)% to 1.5%.
What to watch
- Third quarter 2026 comparable store sales outlook of (0.5)% to 1.5%.
- Third quarter 2026 diluted earnings per share outlook of $1.20 to $1.24.
- Execution toward 42 net new stores for full year 2026.
- The fourth-quarter impact of the 53rd week, estimated at approximately $200 million in sales, $28 million in income before interest and taxes, and $0.21 in diluted earnings per share.
- Full-year 2026 EBIT outlook of $675 million to $685 million on a 52-week basis.
Balance sheet and cash flow
- Cash and cash equivalents: $ 223,928 (in thousands) as of June 28, 2026
- Zero balance on the $600 million revolving credit facility
- Long-term debt and other finance obligations: 110,799 (in thousands) as of June 28, 2026
- Cash flows from operating activities: 368,995 (in thousands) for the twenty-six weeks ended June 28, 2026
- Purchases of property and equipment: (189,907) (in thousands) for the twenty-six weeks ended June 28, 2026
- Cash flows used in investing activities: (189,907) (in thousands) for the twenty-six weeks ended June 28, 2026
- Decrease in cash, cash equivalents, and restricted cash: (34,375) (in thousands) for the twenty-six weeks ended June 28, 2026
- Cash, cash equivalents, and restricted cash at the end of the period: $ 226,519 (in thousands)
Analysis
Sprouts reported second-quarter net sales of $ 2,325,804 (in thousands), compared with $ 2,220,602 (in thousands) in the same period in 2025, while comparable store sales were (1.0)%. The company opened 7 new stores and ended the quarter with 490 stores in 25 states. Management attributed the sales performance to strong new-store performance and cited its foraging and innovation efforts, while also characterizing the consumer environment as cautious.
Profitability was lower than the prior-year period on the reported GAAP income statement. Gross profit was 900,648 (in thousands), compared with 862,600 (in thousands), but selling, general and administrative expenses were 682,633 (in thousands), compared with 645,127 (in thousands), and depreciation and amortization was 43,081 (in thousands), compared with 36,606 (in thousands). Income from operations was 174,174 (in thousands), compared with 179,356 (in thousands), and net income was $ 129,195 (in thousands), compared with $ 133,703 (in thousands). Diluted earnings per share increased to $ 1.37 from $ 1.35, while diluted weighted average shares outstanding were 94,410 (in thousands), compared with 98,774 (in thousands).
For the twenty-six weeks ended June 28, 2026, cash flows from operating activities were 368,995 (in thousands), compared with 410,337 (in thousands) in the prior-year period. Purchases of property and equipment were (189,907) (in thousands), compared with (120,319) (in thousands). The company repurchased 0.9 million shares for a total investment of $70 million, excluding excise tax, during the second quarter. It ended the quarter with $ 223,928 (in thousands) of cash and cash equivalents, a zero balance on its $600 million revolving credit facility, and 110,799 (in thousands) of long-term debt and other finance obligations.
Third-quarter guidance calls for comparable store sales of (0.5)% to 1.5% and diluted earnings per share of $1.20 to $1.24. On a 52-week basis, full-year guidance calls for net sales growth of 5.5% to 6.5%, comparable store sales of (0.5)% to 0.5%, EBIT of $675 million to $685 million, diluted earnings per share of $5.32 to $5.40, 42 net new stores, and capital expenditures of ~$310 million net of landlord reimbursements. Fiscal 2026 will contain a 53rd week in the fourth quarter, which the company estimates will add approximately $200 million in sales, $28 million in income before interest and taxes, and $0.21 in diluted earnings per share.
Management, verbatim
Our second-quarter results were in line with our expectations,
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.
Jack Sinclair, chief executive officer of Sprouts Farmers Market
Not in the filing
stated, not guessed- Reported gross margin
- Quarterly operating cash flow
- Reported free cash flow
- Segment revenue and segment profitability
- Non-GAAP earnings per share
- Reported quarterly EBITDA and EBIT results
- Prior-quarter comparisons for reported income-statement metrics
- Prior guidance/outlook for comparison
- Dividend information
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This SEC 8-K (Item 2.02) reports Sprouts’ 13-week second quarter ended June 28, 2026 and provides third-quarter and full-year 2026 outlook.
Ticker impact
Sprouts reported 13-week Q2 results and issued Q3 and full-year 2026 EPS and comparable-store-sales outlook in an SEC 8-K.
Likely modest reaction unless the market had different expectations for comps and EPS range.
The filing includes concrete quarterly and full-year guidance ranges (Q3 comps, EPS; FY net sales growth, EBIT, EPS) plus a quantified 53rd-week impact, which can reprice forward estimates.
Market effects
Specialty grocery retailers may see read-across on consumer demand resilience and store-expansion execution.
Limited, as the update is company-specific and not tied to a regional macro shock.
Low, as the news is domestic retail performance and guidance.
Counterpoint
Despite “in line” results, the Q3 comparable-store-sales range includes negative territory, which could cap upside if investors expected a re-acceleration.
Key entities
- companySprouts Farmers Market, Inc.
Reported Q2 2026 results and provided Q3 and full-year 2026 guidance in an SEC 8-K.
