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 in 2024, expanded into Wyoming, created approximately 3,300 new jobs, and ended the year with 440 stores in 24 states.

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

• Introduced 7,100 new items, including over 300 Sprouts Brand products, with Sprouts Brand accounting for 23% of sales and outpacing company growth.

• Achieved best-ever customer service scores and was recognized as Retailer of the Year by Progressive Grocer for 2024.

Financial highlights

• Q4 2024 net sales reached $2 billion, up 17.5%-18% year-over-year, with 11.5% comparable store sales growth.

• 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.

• FY2024 net income was $381 million, diluted EPS $3.75, up 32% from prior year.

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

Outlook and guidance

• 2025 sales growth expected at 10.5%-12.5%, with comparable sales of 4.5%-6.5%.

• At least 35 new stores planned for 2025, all in existing markets.

• Adjusted EBIT expected between $590-$610 million; adjusted EPS $4.52-$4.68.

• Q1 2025 comp sales expected at 10%-11%, with adjusted EPS $1.51-$1.55.

• CapEx for 2025 projected at $230-$250 million (net of landlord reimbursement).