Sprouts Farmers Market Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −5.26%.
Did SFM Beat Earnings? Q4 2025 Results
Sprouts Farmers Market delivered a solid fourth quarter, posting diluted EPS of $0.92 and beating the $0.89 consensus estimate by 3.85%, while revenue of $2.15 billion grew 7.6% year over year but landed just fractionally short of expectations. The earnings beat was driven in large part by continued margin expansion and operational leverage, with Sprouts Brand private-label products, which reached $2.30 billion in full-year sales, up 33%, proving a meaningful contributor to profitability as the company leaned into its specialty grocery positioning. For the full fiscal year, diluted EPS climbed to $5.31 from $3.75, and net sales reached $8.81 billion, reflecting 14% growth. Looking ahead, management is signaling a more measured 2026, guiding for full-year diluted EPS of $5.28 to $5.44 and comparable store sales of -1% to 1%, with first-half headwinds expected from tough prior-year comparisons; analysts are now watching how recently appointed merchandising and customer leadership navigate those pressures while the company targets 40 or more new store openings.
- Comparable store sales growth of 1.6% in Q4 and 7.3% for full year
- Sprouts Brand sales reached $2.3B, up 33% YoY, representing 26% sales penetration
- Gross margin expansion to 38.8% from 36.7% in 2022
- EBIT margin improved to 7.8% from 5.6% in 2022
- ROIC including operating leases grew to 18.3% from 12.4% in 2022
- Over 70% of products sold are attribute-driven
- ~55% of total sales from identified loyalty customers by end of 2025
- Over 15% sales penetration from e-commerce
“Sprouts delivered strong growth in 2025. These results were a testament to the strength of our business and our team's commitment to serving our unique target customer. We are committed to helping our customers live and eat better and remain laser focused on executing our strategy in the coming years.”
Sprouts Farmers Market CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, Sprouts expects comparable store sales growth of -3% to -1% and diluted EPS of $1.66 to $1.70. For full-year 2026 on a 52-week basis, the company guides net sales growth of 4.5% to 6.5%, comparable store sales growth of -1% to 1%, EBIT of $675 million to $695 million, diluted EPS of $5.28 to $5.44, 40+ new store openings, and capital expenditures (net of landlord reimbursements) of $280 million to $310 million. Fiscal 2026 is a 53-week year, with the extra week estimated to add approximately $200 million in sales, $28 million in EBIT, and $0.21 in diluted EPS. Management expects challenges in 2026, especially in the first half, due to strong prior-year comparisons and a dynamic macro environment. Long-term targets include approximately 10% unit growth, low single-digit comps, stable EBIT margins off a higher base, and low double-digit earnings growth with strong ROIC.
SFM YoY Financials
Figures from SEC filings and company reports. Not investment advice.