Sprouts Farmers Market (SFM) Q4 2024 earnings summary

Executive summary

• Achieved 13% year-over-year sales growth to $7.7 billion, with 7.6% comparable store sales growth and strong new store performance; opened 33 new stores, expanded into Wyoming, and created 3,300 new jobs, ending the year with 440 stores in 24 states.

• Introduced 7,100 new items, including 300+ Sprouts Brand products, which contributed 23% of Q4 sales and outpaced company growth.

• E-commerce sales surpassed $1 billion, representing 14.5% of Q4 sales, with 37% year-over-year growth and expanded access via UberEats partnership.

• Achieved best-ever customer service scores and record team member retention.

• Recognized as Retailer of the Year by Progressive Grocer for differentiated healthy product assortment.

Financial highlights

• Q4 sales reached $2 billion, up 18% year-over-year, with 11.5% comparable store sales growth; full-year net sales grew 13% to $7.7 billion.

• Q4 gross margin was 38.1%, up from 36.5% year-over-year, driven by inventory management and supply chain leverage.

• Q4 net income was $80 million, diluted EPS $0.79, up 61% year-over-year; full-year diluted EPS reached $3.75, a 32% increase over 2023.

• FY2024 EBIT was $504 million, net income $381 million; adjusted EBITDA for 2024 was $644.7 million.

• Operating cash flow was $645 million; $200 million invested in capital expenditures net of landlord reimbursement.

Outlook and guidance

• FY2025 sales growth expected at 10.5%-12.5%, with comp sales of 4.5%-6.5%; Q1 2025 comp sales expected at 10%-11%, adjusted EPS $1.51-$1.55.

• Plan to open at least 35 new stores, all in existing markets.

• Adjusted EBIT guidance: $590-$610 million; adjusted EPS: $4.52-$4.68, assuming no further share repurchases.

• FY2025 capital expenditures (net of landlord reimbursement) expected at $230-$250 million, focused on new stores, supply chain, and technology.

• Anticipate continued gross margin expansion (25-30 bps for FY2025), with further supply chain leverage and shrink reduction.