Sprouts Farmers Market (NASDAQ:SFM – Get Free Report) announced its quarterly earnings results on Wednesday. The company reported $1.37 EPS for the quarter, beating analysts’ consensus estimates of $1.35 by $0.02, FiscalAI reports. The company had revenue of $2.33 billion during the quarter, compared to analysts’ expectations of $2.32 billion. Sprouts Farmers Market had a return on equity of 36.06% and a net margin of 5.70%.Sprouts Farmers Market’s revenue was up 4.7% on a year-over-year basis. During the same period in the prior year, the business posted $1.35 EPS. Sprouts Farmers Market updated its Q3 2026 guidance to 1.200-1.240 EPS and its FY 2026 guidance to 5.320-5.400 EPS.
Here are the key takeaways from Sprouts Farmers Market’s conference call:
- Second-quarter sales rose 5% to $2.3 billion, driven by strong new-store performance, while comparable sales declined 1%. Diluted EPS increased 1% to $1.37, and e-commerce sales grew more than 12% to approximately 16% of total sales.
- The consumer backdrop remains pressured by inflation, elevated fuel costs, and affordability concerns, with lower-engaged and lower-income customers reducing trip frequency and basket units. Affordability tests improved units but produced a slower-than-expected traffic response.
- Sprouts maintained its full-year outlook on a 52-week basis, including sales growth of 5.5%-6.5%, comps of negative 0.5% to positive 0.5%, EBIT of $675 million-$685 million, and EPS of $5.32-$5.40. Third-quarter EBIT margin is expected to decline about 50 basis points due to fixed-cost deleverage, fuel costs, and increased store openings.
- New stores continue to outperform expectations, with 42 net openings now planned for 2026 and more than 110 executed leases in the pipeline. Recent store vintages are comping positively, supporting management’s confidence in long-term expansion.
- Innovation, Sprouts brand products, e-commerce, and supply-chain initiatives remain areas of strength, while nearly 85% of stores now receive fresh meat through Sprouts distribution centers. The company also generated $369 million of year-to-date operating cash flow and repurchased $210 million of stock through the second quarter.
Sprouts Farmers Market Stock Up 1.8%
Shares of Sprouts Farmers Market stock traded up $1.39 during trading on Wednesday, reaching $79.16. The stock had a trading volume of 2,524,648 shares, compared to its average volume of 2,498,508. The company has a current ratio of 0.92, a quick ratio of 0.42 and a debt-to-equity ratio of 0.07. The company has a market capitalization of $7.44 billion, a price-to-earnings ratio of 15.22, a P/E/G ratio of 2.03 and a beta of 0.67. The stock has a fifty day moving average price of $81.95 and a two-hundred day moving average price of $77.94. Sprouts Farmers Market has a 52 week low of $64.75 and a 52 week high of $160.49.
Analysts Set New Price Targets
Read Our Latest Research Report on SFM
Insider Activity at Sprouts Farmers Market
In other Sprouts Farmers Market news, CEO Jack Sinclair sold 10,788 shares of the company’s stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $84.87, for a total transaction of $915,577.56. Following the completion of the transaction, the chief executive officer owned 269,980 shares of the company’s stock, valued at $22,913,202.60. This represents a 3.84% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Brandon F. Lombardi sold 406 shares of the firm’s stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $82.04, for a total transaction of $33,308.24. Following the transaction, the insider directly owned 6,801 shares of the company’s stock, valued at $557,954.04. This represents a 5.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 45,310 shares of company stock valued at $3,873,881. 1.30% of the stock is owned by insiders.
Institutional Inflows and Outflows
Hedge funds have recently added to or reduced their stakes in the business. Abel Hall LLC acquired a new stake in shares of Sprouts Farmers Market in the fourth quarter valued at about $234,000. Laird Norton Wetherby Wealth Management LLC raised its holdings in Sprouts Farmers Market by 9.8% during the third quarter. Laird Norton Wetherby Wealth Management LLC now owns 1,956 shares of the company’s stock worth $213,000 after acquiring an additional 174 shares in the last quarter. Beacon Pointe Advisors LLC boosted its position in Sprouts Farmers Market by 33.2% during the fourth quarter. Beacon Pointe Advisors LLC now owns 2,650 shares of the company’s stock valued at $211,000 after purchasing an additional 660 shares during the last quarter. Hilltop Holdings Inc. acquired a new position in Sprouts Farmers Market during the third quarter valued at approximately $210,000. Finally, Quarry LP bought a new position in Sprouts Farmers Market in the third quarter valued at approximately $208,000.
Sprouts Farmers Market Company Profile
Sprouts Farmers Market, Inc (NASDAQ: SFM) is a specialty grocery retailer focused on fresh, natural and organic foods. Headquartered in Phoenix, Arizona, the company operates stores designed to offer an open-market shopping experience, emphasizing quality produce sourced from regional farmers alongside organic pantry staples, dairy, meat and seafood. Sprouts’ product assortment also includes bulk foods, vitamins and supplements, a deli and prepared foods, reflecting its commitment to wellness and affordable healthy living.
Founded in 2002 by members of the Boney family, Sprouts began as a single farmers market in Chandler, Arizona.
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