Sprouts Farmers Market (SFM) Investor presentation summary

Strategic pillars and growth initiatives

• Focus on high-quality, attribute-led assortment and innovation, with a service-driven, omni-channel store experience targeting health-conscious customers.

• Deepen customer engagement through personalization, loyalty programs, and targeted marketing to grow awareness and acquisition.

• Expand store and market footprint with new stores, a small-box format, and accelerated new store performance.

• Build an advantaged supply chain by improving fresh distribution, expanding the network, and increasing local sourcing.

Financial performance and targets

• Net sales grew from $6.4B in 2022 to $8.8B in 2025, with a 13% CAGR; EBIT margin rose from 5.6% to 7.8%.

• Diluted EPS increased from $2.39 in 2022 to $5.31 in 2025, a 31% CAGR.

• Strong cash flow and balance sheet support self-funded growth and ongoing share repurchases.

• New stores open at $13M in year 1 sales, growing 20–25% over four years, with cash-on-cash returns in the low to mid-thirties by year 5.

• Long-term targets include ~10% unit growth, stable EBIT margins, low single-digit comps, and low double-digit earnings growth.

Differentiated customer experience

• Over 7,000 new items introduced in 2025, with monthly Forager Finds and a focus on innovation.

• Sprouts Brand sales reached $2.3B in 2025, up 33% from 2024, with over 600 new products launched.

• More than 70% of products are attribute-driven; over 30% are organic, and 100% of seafood is responsibly sourced.

• Target customers are health-focused, willing to pay for quality, and increasingly younger and omnichannel.

• Loyalty program adoption is strong, with 55% of sales from identified customers by end of 2025.