Sprouts Farmers Market Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.30%.
Did SFM Beat Earnings? Q2 2025 Results
Sprouts Farmers Market delivered a standout second quarter, posting diluted EPS of $1.35 against a consensus estimate of $1.24, a beat of 9.09%, while revenue of $2.22 billion topped expectations by 2.50% and grew 17.3% year over year. The results were powered by comparable store sales growth of 10.2%, driven predominantly by traffic gains rather than price, alongside meaningful margin expansion that lifted gross margin to 38.8% from 37.9% a year earlier and pushed EBIT margin to 8.1% from 6.7%. CEO Jack Sinclair pointed to investments in self-distribution, supply chain optimization, and customer personalization as the structural forces behind the improvement, with e-commerce now exceeding 14% of total sales. The company's growing emphasis on attribute-focused products, particularly high-protein offerings, continues to resonate with its core health-conscious shopper base. Sprouts added 12 stores in the quarter, reaching 455 locations, and maintained its full-year 2025 guidance for diluted EPS of $5.20 to $5.32 and net sales growth of 14.5% to 16.0%.
- Comparable store sales growth of 10.2% driven primarily by traffic
- Balanced performance across categories, channels and geographies
- Gross margin expansion to 38.8% from 37.9% year over year
- EBIT margin expanded to 8.1% from 6.7% year over year
- E-commerce growth across all delivery partners exceeding 14% of sales
- Customers drawn to quality, fresh, innovative products rooted in healthy attributes
- Compelling comparable sales in recent store vintages
“We are pleased with our excellent results for the second quarter. Our dedicated team members have consistently focused on understanding and meeting the needs of our target customers. Our investments in operations, self-distribution, customer personalization, and team member development all set the stage for exciting future growth.”
Sprouts Farmers Market CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2025, Sprouts expects comparable store sales growth of 6.0% to 8.0% and diluted EPS of $1.12 to $1.16. For full-year 2025, the company guides net sales growth of 14.5% to 16.0%, comparable store sales growth of 7.5% to 9.0%, EBIT of $675 million to $690 million, diluted EPS of $5.20 to $5.32, at least 35 new store openings, and capital expenditures (net of landlord reimbursements) of $230 million to $250 million.
SFM YoY Financials
Figures from SEC filings and company reports. Not investment advice.