What Is Sprouts Farmers Market (SFM) Gaining From Its 480 Store Pasta Rollout?

Sprouts Farmers Market reported Q2 revenue of $2.33B, slightly above analysts’ $2.32B, and GAAP EPS of $1.37 vs $1.34. Adjusted EBITDA was $219.8M vs $213M. Full-year GAAP EPS guidance of $5.36 missed estimates by 3.4%. Same-store sales fell 1% YoY as new stores and online sales rose.

Sprouts Farmers Market (NASDAQ: SFM) shares rose over 16% after the company reported fiscal Q2 results. Net sales increased 5% to $2.3B, though comparable sales fell 1%. Gross margin slipped to 38.7%. EPS was $1.37 vs $1.34 expected. Management projects positive same-store sales in Q3 and FY net sales growth of 5.5% to 6.5%.

Sprouts Farmers Market (SFM) reported Q2 sales of $2.3B, up 5% Y/Y, with e-commerce up more than 12% to about 16% of revenue. Q2 diluted EPS was $1.37. Management cited margin pressure from loyalty and fuel, a 1% comp decline, and a Cyclospora-related produce headwind. Full-year EPS guidance was reaffirmed at $5.32-$5.40; comps guided -0.5% to +0.5%.

Sprouts Farmers Market (Sprouts) reported Q2 net sales of $2.3 billion, up 5% year over year, while comparable-store sales fell 1%. Diluted EPS rose to $1.37 from $1.35. The company opened seven stores to reach 490 locations, ended with $224 million cash, and repurchased about 900,000 shares for $70 million. Q3 comp sales guidance is -0.5% to +1.5%, EPS $1.20-$1.24.

Sprouts Farmers Market (SFM) shares rose 11.3% after its Q2 results beat expectations. EPS was $1.37 versus $1.34 consensus, and net sales increased 4.7% to $2.33B. JPMorgan upgraded SFM to Overweight and raised its price target to $103 from $80. Sprouts guided for comparable sales to turn positive in Q3.

Sprouts Farmers Market (according to its Q2 earnings call) said selective price cuts and promotions in the first half produced mixed results. Q2 EPS was $1.37 vs $1.34 expected, with sales up 5% to $2.32B but comparable store sales down 1%. The company plans to refine affordability using loyalty data and targets FY sales growth of 5.5% to 6.5% and EPS of $5.32 to $5.40.