Sprouts Farmers Market (SFM) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 increased 17% year-over-year to $2.22 billion, driven by 10.2% comparable store sales growth and new store openings.

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

• Opened 12 new stores in Q2, ending with 455 stores across 24 states, and remain on track to open at least 35 new stores in 2025.

• Continued investment in supply chain, innovation, and technology to support scalable growth and customer engagement.

• Share repurchases totaled $73 million in Q2 and $292 million year-to-date.

Financial highlights

• Q2 2025 net sales reached $2.22 billion (up 17% year-over-year), with comparable store sales up 10.2%.

• Gross margin improved to 38.8% (up from 37.9% year-over-year), driven by inventory and category management.

• EBIT was $179 million with an 8.1% margin; net income was $133.7 million, up 40% year-over-year.

• Operating cash flow year-to-date was $410 million, funding $138 million in capital expenditures.

• Ended Q2 with $261 million in cash and no long-term debt.

Outlook and guidance

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

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

• Q3 2025 comparable store sales growth expected at 6%–8%, with EPS between $1.12 and $1.16.

• At least 35 new store openings planned for 2025; capital expenditures projected at $230–$250 million.

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