Sprouts Farmers Market Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.69%.
Did SFM Beat Earnings? Q1 2026 Results
Sprouts Farmers Market posted a modest beat to open fiscal 2026, delivering first-quarter diluted EPS of $1.71 against a consensus estimate of $1.67, a 2.16% positive surprise, even as the results reflected a clear step down from the prior year's pace. Net sales climbed 4.2% year over year to $2.33 billion, edging past the $2.32 billion consensus, but the headline growth masked softer underlying momentum: comparable store sales declined 1.7%, and EBIT margin compressed to 9.2% from 10.1% a year ago as gross margin contracted and SG&A expenses grew faster than revenue. The company opened 6 new stores in the quarter, bringing its footprint to 483 locations, and launched more than 1,500 new items, reinforcing its health and wellness positioning. Looking ahead, management guided Q2 comparable sales of negative 2% to flat and full-year 2026 diluted EPS of $5.32 to $5.48 on a 52-week basis, with CEO Jack Sinclair expressing confidence in sequential improvement throughout the year as growth initiatives gain traction.
- 4% net sales growth driven by new store openings offsetting negative 1.7% comparable store sales
- Gross margin of 39.4%, slightly down from 39.6% in Q1 2025
- EBIT margin compressed to 9.2% from 10.1% year over year
- Fast adoption of loyalty program with ~55% of total sales from identified customers by end of 2025
- Sprouts Brand sales penetration reached 26% in 2025, up from 23% in 2024
- ROIC of 17.4% in Q1 2026 vs. 16.8% in Q1 2025
“The first quarter played out largely as we expected. We continue to focus on accelerating customer engagement, foraging and discovery, building an advantaged supply chain, and expanding access to healthy food. We remain confident in our long-term potential and expect sequential improvement in the business throughout 2026 as we reaccelerate growth. I want to thank our team members for their diligence in executing our strategy and for their dedication to serving our customers.”
Sprouts Farmers Market CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2026, Sprouts expects comparable store sales of (2)% to 0% and diluted EPS of $1.32 to $1.36. For the full year 2026 on a 52-week basis, the company guides net sales growth of 4.5% to 6.5%, comparable store sales of (1)% to 1%, EBIT of $675 million to $695 million, diluted EPS of $5.32 to $5.48, 40+ new store openings, and capital expenditures (net of landlord reimbursements) of $280 million to $310 million. Fiscal 2026 is a 53-week year; the extra week in Q4 is estimated to add approximately $200 million in sales, $28 million in EBIT, and $0.21 in diluted EPS. Management expects sequential improvement in the business throughout 2026 as it reaccelerates growth.
SFM YoY Financials
Figures from SEC filings and company reports. Not investment advice.