Sprouts Farmers Market (SFM) Q4 2025 earnings summary

Executive summary

• Achieved strong growth in FY2025, with net sales up 14% to $8.8 billion, comparable sales up 7.3%, and diluted EPS up 42% to $5.31, driven by new store openings, innovation, and disciplined cost management.

• Opened 37 new stores in 2025, reaching 477 stores in 24 states by year-end, and launched a loyalty program that exceeded sign-up expectations.

• Maintained a healthy balance sheet with $257 million in cash, no long-term debt, and robust cash flow supporting investments and share repurchases.

• Despite strong results, comp sales momentum slowed at year-end, with Q4 traffic slightly negative after a disappointing holiday season.

• The business is well-positioned for long-term growth but faces near-term challenges from tough comparisons and consumer affordability concerns.

Financial highlights

• Q4 2025 net sales were $2.1 billion, up 8% year-over-year, with 1.6% comp sales growth; e-commerce sales grew 15% and represented 15.5% of total sales.

• Q4 diluted EPS was $0.92, up 16-17% year-over-year; Q4 EBIT was $123 million; net income was $90 million.

• FY2025 net sales reached $8.8 billion, up 14%; comp sales grew 7.3%; gross margin improved to 38.8%.

• FY2025 net income was $524 million; EBITDA was $843.9 million; operating cash flow was $716 million; capital expenditures were $224 million (net).

• Share repurchases totaled $472 million in 2025.

Outlook and guidance

• FY2026 is a 53-week year, with the extra week expected to add $200 million in sales, $28 million in EBIT, and $0.21 in EPS.

• On a 52-week basis, FY2026 sales growth is expected at 4.5%-6.5%, with comp sales between -1% and +1%; at least 40 new stores planned.

• FY2026 EBIT expected between $675-$695 million; EPS between $5.28-$5.44, including $300 million in share repurchases.

• Q1 2026 comp sales expected between -3% and -1%; EPS between $1.66-$1.70, with EBIT margin pressure due to fixed cost deleverage and loyalty program.

• Sequential comp improvement anticipated in the second half as comparisons ease.