Sprouts Farmers Market reported net sales of $2.15 billion for the 13‑week fourth quarter of fiscal 2025, an 8% year‑over‑year increase, and diluted earnings per share of $0.92, beating the consensus estimate of $0.89 by $0.03. The earnings beat was driven by disciplined cost management and a favorable mix shift toward higher‑margin fresh produce and prepared foods, offsetting modest price pressure in the grocery category.
For the full fiscal year ending December 28, 2025, Sprouts posted net sales of $8.81 billion, up 14% from $7.72 billion in 2024, and diluted EPS of $5.31, surpassing the consensus estimate of $5.24–$5.28. Full‑year revenue growth was supported by a 1.6% increase in comparable‑store sales, driven by steady demand for organic and natural products, while a 10‑basis‑point decline in gross margin reflected loyalty‑program costs and modest input price increases.
Management reiterated its 2026 guidance, forecasting net sales growth of 4.5% to 6.5%, comparable‑store sales growth of –1% to 1%, and diluted EPS of $5.28 to $5.44. For the first quarter of 2026, comparable‑store sales are expected to decline 3% to 1%, with EPS projected at $1.66 to $1.70. The cautious outlook for Q1 signals management’s concern about strong prior‑year comparisons and a dynamic macro environment, while the moderate full‑year guidance reflects confidence in continued store expansion and operational efficiencies.
Sprouts highlighted strong momentum in its loyalty program, which, despite increasing costs, has helped sustain customer traffic and average transaction size. However, the program’s cost impact contributed to the slight margin compression seen in Q4. "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," said CEO Jack Sinclair. "These strong results are a testament to the team's focus on our target customers and Sprouts' positioning to capitalize on the ongoing trends in healthy living. These are outstanding full year results. However, we are not happy with how the year finished as our comp momentum slowed," he added. "While we were pleased with our 2025 results and remain confident in our long‑term growth, we expect challenges in 2026, especially in the first half due to strong prior year comparisons and a dynamic macro environment," CFO Curtis Valentine noted.
Investor sentiment was mixed, with the EPS beat offset by concerns over the more conservative 2026 outlook, reflecting the company’s cautious stance amid macroeconomic uncertainty and competitive pressure in the grocery sector.
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