Sprouts Farmers Market, Inc. Reports Second Quarter 2026 Results

Sprouts Farmers Market, Inc. Reports Second Quarter 2026 Results PHOENIX--( BUSINESS WIRE)--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:

Leverage and Liquidity in Second Quarter 2026

Third Quarter and Full-Year 2026 Outlook

The following provides information on our third quarter 2026 outlook:

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):

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

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

(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

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

Goodwill

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

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

(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