Sprouts Farmers Market, Inc. Reports Third Quarter 2025 Results

About this update from Sprouts Farmers Market, Inc.

PHOENIX --(BUSINESS WIRE)-- Sprouts Farmers Market, Inc. (Nasdaq: SFM) today reported results for the 13-week third quarter ended September 28, 2025 . "We are opening stores nationwide, and our strategy continues to resonate with our target customers, resulting in strong third quarter performance," said Jack Sinclair , chief executive officer of Sprouts Farmers Market . "Our passionate team members, financial foundation, and disciplined execution will position us to deliver sustainable earnings growth, as we navigate strong year-over-year comparisons." Third Quarter Highlights: Net sales totaled $2.2 billion ; a 13% increase from the same period in 2024 Comparable store sales growth of 5.9% Diluted earnings per share of $1.22 ; compared to diluted earnings per share of $0.91 in the same period in 2024 Opened 9 new stores, resulting in 464 stores in 24 states as of September 28, 2025 Leverage and Liquidity in Third Quarter 2025 Entered into a new $600 million credit facility with terms and conditions substantially similar to our previous agreement Ended the quarter with $322 million in cash and cash equivalents and zero balance on our $600 million revolving credit facility Authorized a new $1 billion share repurchase program and repurchased 0.4 million shares of common stock for a total investment of $50 million , excluding excise tax Generated cash from operations of $577 million and invested $194 million in capital expenditures, net of landlord reimbursement, year-to-date thru September 28, 2025 Fourth Quarter and Full-Year 2025 Outlook The following provides information on our fourth quarter 2025 outlook: Comparable store sales growth: 0.0% to 2.0% Diluted earnings per share: $0.86 to $0.90 The following provides information on our full-year 2025 outlook: Net sales growth: approximately 14% Comparable store sales growth: approximately 7% EBIT : $675 million to $680 million Diluted earnings per share: $5.24 to $5.28 Unit growth: 37 new stores Capital expenditures (net of landlord reimbursements): $230 million to $250 million Third Quarter 2025 Conference Call Sprouts will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, October 29, 2025 , during which Sprouts executives will further discuss third quarter 2025 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 October 29, 2025 . 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," or "believes," 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; 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 True to its farm-stand heritage, Sprouts offers a unique grocery experience featuring an open layout with fresh produce at the heart of the store. Sprouts inspires wellness naturally with a carefully curated assortment of better-for-you products paired with purpose-driven people. The healthy grocer continues to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. Headquartered in Phoenix , and one of the largest and fastest growing specialty retailers of fresh, natural and organic food in the United States , Sprouts employs approximately 35,000 team members and operates more than 450 stores in 24 states nationwide. To learn more about Sprouts, and the good it brings 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 Thirty-nine weeks ended September 28 , 2025 September 29 , 2024 September 28 , 2025 September 29 , 2024 Net sales $ 2,200,430 $ 1,945,735 $ 6,657,468 $ 5,723,062 Cost of sales 1,349,379 1,204,812 4,057,454 3,541,461 Gross profit 851,051 740,923 2,600,014 2,181,601 Selling, general and administrative expenses 653,329 580,332 1,921,682 1,676,470 Depreciation and amortization (exclusive of depreciation included in cost of sales) 38,862 34,408 110,567 98,129 Store closure and other costs, net 1,462 3,732 4,679 8,968 Income from operations 157,398 122,451 563,086 398,034 Interest income, net (690 ) (1,061 ) (2,045 ) (382 ) Income before income taxes 158,088 123,512 565,131 398,416 Income tax provision 37,972 31,902 131,286 97,417 Net income $ 120,116 $ 91,610 $ 433,845 $ 300,999 Net income per share: Basic $ 1.23 $ 0.91 $ 4.43 $ 2.99 Diluted $ 1.22 $ 0.91 $ 4.38 $ 2.97 Weighted average shares outstanding: Basic 97,672 100,148 98,023 100,560 Diluted 98,715 101,025 99,086 101,469 SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) September 28 , 2025 December 29 , 2024 ASSETS Current assets: Cash and cash equivalents $ 322,415 $ 265,159 Accounts receivable, net 64,848 30,901 Inventories 399,938 343,329 Prepaid expenses and other current assets 30,344 36,131 Total current assets 817,545 675,520 Property and equipment, net of accumulated depreciation 989,587 895,189 Operating lease assets, net 1,596,100 1,466,903 Intangible assets 208,215 208,094 Goodwill 381,750 381,750 Other assets 19,925 13,243 Total assets $ 4,013,122 $ 3,640,699 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 268,330 $ 213,414 Accrued liabilities 239,836 216,842 Accrued salaries and benefits 89,595 97,991 Accrued income tax 11,522 — Current portion of operating lease liabilities 170,614 150,400 Current portion of finance lease and other finance obligations 1,597 1,321 Total current liabilities 781,494 679,968 Long-term operating lease liabilities 1,633,293 1,520,272 Long-term debt and other finance obligations 53,423 7,248 Other long-term liabilities 37,783 38,259 Deferred income tax liability 72,571 73,059 Total liabilities 2,578,564 2,318,806 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, 97,451,026 shares issued and outstanding, September 28, 2025 ; 99,255,036 shares issued and outstanding, December 29, 2024 98 99 Additional paid-in capital 831,870 808,140 Retained earnings 602,590 513,654 Total stockholders’ equity 1,434,558 1,321,893 Total liabilities and stockholders’ equity $ 4,013,122 $ 3,640,699 SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (IN THOUSANDS) Thirty-nine weeks ended September 28 , 2025 September 29 , 2024 Operating activities Net income $ 433,845 $ 300,999 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 116,003 103,881 Operating lease asset amortization 107,866 99,278 Share-based compensation 22,045 19,925 Deferred income taxes (488 ) 1,170 Other non-cash items 1,643 3,116 Changes in operating assets and liabilities: Accounts receivable 24,688 30,273 Inventories (56,608 ) (6,275 ) Prepaid expenses and other current assets 5,310 18,595 Other assets (3,928 ) 219 Accounts payable 23,231 25,556 Accrued liabilities 23,496 37,877 Accrued salaries and benefits (8,397 ) 6,777 Accrued income tax 11,522 1,392 Operating lease liabilities (123,680 ) (122,646 ) Other long-term liabilities 923 214 Cash flows from operating activities 577,471 520,351 Investing activities Purchases of property and equipment (176,081 ) (161,687 ) Cash flows used in investing activities (176,081 ) (161,687 ) Financing activities Payments on revolving credit facilities — (125,000 ) Payments on finance lease liabilities (793 ) (840 ) Repurchase of common stock (341,925 ) (129,698 ) Payments of excise tax on repurchases of common stock (2,091 ) — Proceeds from exercise of stock options 1,686 4,729 Cash flows used in financing activities (343,123 ) (250,809 ) Increase in cash, cash equivalents, and restricted cash 58,267 107,855 Cash, cash equivalents, and restricted cash at beginning of the period 267,213 203,870 Cash, cash equivalents, and restricted cash at the end of the period $ 325,480 $ 311,725 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 expense, provision for income tax, and depreciation, amortization and accretion. The company defines EBIT as net income before interest expense 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 thirty-nine weeks ended September 28, 2025 and September 29, 2024 : SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES NON-GAAP MEASURE RECONCILIATION (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Thirteen weeks ended Thirty-nine weeks ended September 28 , 2025 September 29 , 2024 September 28 , 2025 September 29 , 2024 Net income $ 120,116 $ 91,610 $ 433,845 $ 300,999 Income tax provision 37,972 31,902 131,286 97,417 Interest (income) expense, net (690 ) (1,061 ) (2,045 ) (382 ) Earnings before interest and taxes (EBIT) 157,398 122,451 563,086 398,034 Depreciation, amortization and accretion 40,739 36,125 116,003 103,881 EBITDA $ 198,137 $ 158,576 $ 679,089 $ 501,915 View source version on businesswire.com : https://www.businesswire.com/news/home/20251029700440/en/ Investor Contact: Susannah Livingston (602) 682-1584 [email protected] Media Contact: [email protected] Source: Sprouts Farmers Market

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