Sprouts Farmers Market (SFM) investor relations material

Executive summary

• Net sales increased 17% year-over-year in Q2 2025 to $2.22 billion, with comparable store sales up 10.2% and 12 new stores opened, totaling 455 stores in 24 states.

• Diluted EPS rose 44% to $1.35, reflecting strong operational execution and profitability.

• Year-to-date net sales up 18%, with $410 million in operating cash flow and $292 million in share repurchases.

• Continued focus on fresh, local, and innovative products, with strong customer engagement and team investment.

• Executed long-term growth strategy with market expansion, supply chain, and technology investments.

Financial highlights

• Q2 2025 net sales: $2.22 billion (up 17%); comparable store sales growth: 10.2%.

• Gross margin improved to 38.8% (up from 37.9%); gross profit: $862.6 million.

• EBIT was $179 million (8.1% margin); net income was $134 million; operating cash flow YTD was $410 million.

• E-commerce sales grew 27%, now 15% of total sales; Sprouts brand contributed 24% of sales.

• Return on invested capital (ROIC) for the rolling four quarters ended June 29, 2025: 17.8%.

Outlook and guidance

• Full-year 2025 net sales growth projected at 14.5%–16%, with comparable sales growth of 7.5%–9%.

• EBIT guidance for 2025 is $675–$690 million; EPS expected at $5.20–$5.32.

• Q3 2025 comp sales expected at 6%–8%, EPS at $1.12–$1.16.

• Plan to open at least 35 new stores in 2025; capital expenditures forecasted at $230–$250 million.

• Management expects continued EBIT margin expansion of 40–50 basis points year-over-year.