Sprouts Farmers Market shares up 2% on strong outlook, Q2 results

PHOENIX - Sprouts Farmers Market, Inc. (NASDAQ:SFM) reported second-quarter earnings that exceeded analyst expectations on Wednesday, sending shares up 2.6% in after-hours trading.

The specialty grocery retailer posted adjusted earnings per share of $1.35 for the second quarter, surpassing the analyst consensus of $1.23. Revenue reached $2.22 billion, beating estimates of $2.17 billion and representing a 17% increase compared to the same period last year. Comparable store sales grew 10.2% YoY.

"We are pleased with our excellent results for the second quarter," said Jack Sinclair, chief executive officer of Sprouts Farmers Market. "Our dedicated team members have consistently focused on understanding and meeting the needs of our target customers."

The company opened 12 new stores during the quarter, bringing its total to 455 locations across 24 states. For the third quarter, Sprouts forecasts comparable store sales growth of 6.0% to 8.0% and EPS of $1.12 to $1.16, with the midpoint slightly above the analyst consensus of $1.12.

Sprouts raised its full-year 2025 outlook, now expecting EPS of $5.20 to $5.32, higher than the analyst consensus of $5.11. The company projects net sales growth of 14.5% to 16.0% and comparable store sales growth of 7.5% to 9.0% for the year.

The retailer maintained a strong financial position with $261 million in cash and cash equivalents at quarter-end and no balance on its $700 million revolving credit facility. During the quarter, Sprouts repurchased 0.5 million shares of common stock for a total investment of $73 million.

The company plans to open at least 35 new stores this year and expects capital expenditures between $230 million and $250 million, net of landlord reimbursements.

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