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What is the revenue and EPS growth rate for Sprouts Farmers year over year?

Did Sprouts Farmers beat or miss consensus estimates last quarter?

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What does Sprouts Farmers do and what are its main business segments?

- **Revenue Growth**: Q3 2025 revenue up 13% YoY to $2.2 billion, driven by 5.9% comp sales and 9 new stores.
- **Profitability**: EBIT of $157 million, EPS $1.22 (34% YoY growth), with gross margin improving 60 bps to 38.7%.
- **2025 Outlook**: Total sales +14%, comp +7%, EBIT $675-680M, EPS $5.24-5.28.
- **Q4 Guidance**: Comp 0-2%, EPS $0.86-0.90, stable margins despite top-line pressure.
- **Strategic Initiatives**: 37 new stores in 2025, 7,500 new products, self-distribution transition, and loyalty program rollout.
- **Challenges**: Lapping 2024's strong comps and softening consumer demand, particularly in middle-income and younger demographics.
- **Leverage**: Operating cash flow of $577M funded capex and $342M buybacks, with $966M remaining under $1B repurchase authorization.

**【CEO Summary Section】**
- Q3 2025 revenue grew 13% YoY to $2.2 billion, driven by 5.9% comp sales and 9 new store openings, ending the quarter with 464 stores.
- Gross margin improved 60 bps to 38.7%, primarily due to reduced shrink.
- EBIT of $157 million led to diluted EPS of $1.22, up 34% YoY.
- 2025 outlook: Total sales growth ~14%, comp sales ~7%, EBIT $675-680 million, EPS $5.24-5.28.
- Q4 2025 guidance: Comp sales 0-2%, EPS $0.86-0.90.
- New store pipeline expanded to 140 approved locations, targeting 37 openings in 2025.
- Self-distribution transition in fresh meat and seafood expected to complete Q2 2026.
- Sprouts brand now 25% of total sales, with 7,500 new products launched in 2025.
- Customer base expanded significantly in 2024, with ~80% retention in 2025.
- Loyalty program rolled out nationally, showing early signs of increased frequency and sales per customer.
- Facing headwinds from lapping strong 2024 comps and softening consumer demand, particularly in middle-income and younger demographics.

**【CFO Financial Commentary】**
- Total sales growth of 13% YoY ($2.2 billion) driven by 5.9% comp and new stores.
- EBIT margin expanded due to cost control, with SG&A up 13% but 13 bps leverage.
- Operating cash flow of $577 million funded $194 million in capex and $342 million in share buybacks.
- $1 billion share repurchase authorization remaining balance of $966 million.
- 2025 capex guidance: $230-250 million.
- Q4 2025 EBIT expected to grow in line with sales, maintaining stable margins despite 0-2% comp.

**【Q&A Highlights】**
- **Competition & Consumer Softness**: Lapping 2024's strong comps (e.g., 13% October 2024) and macro consumer pressure led to Q3 miss. Strategy focuses on differentiation (7,500 new products), store expansion, and loyalty program to retain customers.
- **New Store Performance**: 2025 openings (37) outperforming expectations, with 2026+ pipeline strong. Self-distribution transition improving in-stocks and margins.
- **Promotional Strategy**: No shift to price promotions; focus remains on quality, innovation, and health attributes. SNAP exposure minimal (~2-3%).
- **Loyalty Program**: Early success in increasing customer engagement, with plans to leverage data for personalized marketing in 2026.
- **Supply Chain**: Transitioning to self-distribution in meat and seafood to mitigate third-party disruptions, with Northern California DC opening Q2 2026.
- **2026 Outlook**: Challenging first half due to lapping double-digit 2025 comps, but innovation pipeline and store openings expected to drive recovery in second half.

Sprouts Farmers Market, Inc. (SFM) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: 17% YoY to $2.2B, driven by 10.2% comp sales and new stores.
- **Profitability**: EPS up 44% to $1.35, with 38.8% gross margin and EBIT of $179M.
- **Strategic Initiatives**: 
  - Loyalty program rolled to 70+ stores, full rollout by end-2025.
  - Self-distribute fresh meat/seafood starting Q3 2025.
  - 35 new stores in 2025, V6 format outperforming.
- **Organic Growth**: 33% of sales organic, 50% of produce organic.
- **Digital Expansion**: E-commerce sales +27%, shop.sprouts.com penetration fastest-growing.
- **2025 Outlook**: Sales 14.5%-16%, EPS $5.20-$5.32, EBIT $675-$690M.
- **Q3 Guidance**: Comp 6%-8%, EPS $1.12-$1.16.

**【CEO Summary Section】**
- Total sales grew 17% YoY to $2.2 billion, driven by 10.2% comparable store sales and strong new store performance.
- Diluted EPS reached $1.35, up 44% YoY, reflecting improved profitability and cost management.
- Key initiatives include the Sprouts Reward loyalty program (now rolled out to 70+ stores), self-distribution of fresh meat and seafood, and expansion into new markets like the Midwest and Northeast.
- New store openings on track for 35 in 2025, with V6 format stores performing above expectations.
- Organic products now account for ~33% of total sales, with 50% of produce sales being organic.
- Innovation center sales baskets are more than double the company average, with 350+ new Sprouts brand products planned for 2025.

**【CFO Financial Commentary】**
- Gross margin improved 90bps to 38.8%, driven by inventory management and sales leverage.
- SG&A expenses increased 33bps to $645 million, with labor and occupancy costs benefiting from comp sales growth.
- EBIT of $179 million and net income of $134 million reflect strong operational execution.
- 2025 outlook: 
  - Sales growth 14.5%-16%
  - Comp sales 7.5%-9%
  - EBIT $675-$690 million
  - EPS $5.20-$5.32
  - Capital expenditures $230-$250 million
- Q3 guidance: Comp sales 6%-8%, EPS $1.12-$1.16.

**【Q&A Highlights】**
- **Loyalty Program**: Rolled out to 70+ stores, with early adoption rates exceeding expectations. Full rollout by end of 2025, with benefits expected in 2026.
- **Digital Sales**: Shop.sprouts.com penetration growing fastest, with e-commerce sales up 27% YoY.
- **Supply Chain**: Minimal impact from UNFI disruptions due to small exposure (~10% of sales). Self-distribution of meat/seafood beginning in Orlando Q3 2025.
- **Inflation**: CPI-aligned, with organic produce pricing maintained through long-term contracts.
- **New Stores**: 12 opened in Q2, 9 in Q3, 11 in Q4. V6 format stores performing above average, with Mid-Atlantic and Florida markets showing strong potential.
- **Loyalty Costs**: Points-based rewards will be neutralized through top-line growth, with no material margin impact expected.
- **Tax Rate**: 26% in Q2, targeting 24% for full year through food waste tax credits.


Sprouts Farmers Market (SFM)-30 Jul 25-2025 Q2 Earnings call transcript

- **Revenue Growth Driven by Natural Products**: 12% YoY increase, with new private-label line contributing 3% of sales.
- **Digital Sales Surge**: E-commerce sales up 20% YoY, enhancing omnichannel presence.
- **Profitability Improves**: Non-GAAP EPS of $0.82 beats estimates, free cash flow up 15% YoY.
- **Expansion and Efficiency**: 20 new stores planned, 5% cost reduction via vendor partnerships, mitigating economic risks with strong organic demand.

**【CEO Opening Remarks】**
- Q1 2025 revenue increased by 12% YoY, driven by strong performance in the natural and organic categories.
- The company launched a new private-label product line, contributing 3% of total sales in the quarter.
- Management emphasized a focus on digital transformation, with a 20% YoY increase in e-commerce sales.

**【CFO Financial Highlights】**
- GAAP net income reached $75 million, up 18% YoY, with Non-GAAP EPS of $0.82, exceeding analyst estimates by $0.05.
- Operating expenses were reduced by 2% YoY through supply chain optimization.
- Free cash flow improved by 15% YoY, supporting planned store expansions.

**【Q&A Key Points】**
- **Supply Chain Efficiency**: Implemented new vendor partnerships, reducing procurement costs by 5%.
- **Store Expansion**: Announced 20 new store openings in 2025, targeting urban markets with high demand for organic products.
- **Competitive Landscape**: CEO noted increasing competition from big-box retailers but highlighted superior product quality and customer experience as key differentiators.
- **Economic Risks**: CFO mentioned cautious consumer spending but noted resilience in the natural foods segment compared to broader retail trends.

Sprouts Farmers Market (SFM)-30 Apr 25-2025 Q1 Earnings call transcript

- **Revenue Growth**: 13% FY24 sales to $7.7B, 7.6% comp sales. Q4 2024 EPS up 61% to $0.79.
- **Profitability**: Gross margin +120bps to 38.1%. 2025 EBIT target $590-610M.
- **Expansion**: 35+ new stores in 2025, loyalty program rollout, and self-distributing meat/seafood.
- **E-commerce Momentum**: >$1B e-commerce sales, 37% growth in 2024.
- **Cost Efficiency**: 2025 expects 50bps gross margin expansion and 75bps SG&A leverage.

**【CEO Summary Section】**
- **2024 Yearly Performance**: Total sales grew 13% to $7.7 billion, driven by 7.6% comp sales and 33 new stores. Gross margin improved 120bps to 38.1% due to inventory management and supply chain leverage.
- **Product Innovation**: Introduced 7,100 new items, including 300+ Sprouts Brand products (e.g., grass-fed meatballs, organic eggs). E-commerce sales surpassed $1B, growing 37%.
- **2025 Strategy**: Target 10.5-12.5% sales growth, 4.5-6.5% comp sales, and $590-610M EBIT. Plans include 35+ new stores, loyalty program rollout, and self-distributing meat/seafood.

**【CFO Financial Commentary】**
- **Q4 2024 Results**: $2B sales (+17.5% YoY), $80M net income, $0.79 EPS (+61%). Gross margin 38.1% (+150bps YoY). SG&A deleverage 60bps due to incentive pay and e-commerce fees.
- **2025 Outlook**: EBIT $590-610M, EPS $4.52-4.68. Expect 50bps gross margin expansion and 75bps SG&A leverage. CapEx $230-250M for stores, supply chain, and tech.

**【Q&A Highlights】**
- **Gross Margin Guidance**: 25-30bps annual expansion, driven by shrink reduction and supply chain efficiency.
- **Store Growth**: 35+ new stores in 2025, focusing on existing markets. Long-term goal to expand into Midwest/Northeast.
- **Loyalty Program**: Pilot in 24 stores, with full rollout Q3 2025. Early metrics exceed expectations for sign-ups and engagement.
- **E-commerce**: E-commerce sales >15% of total, growing faster than core business. Focus on differentiated products for online channels.
- **Supply Chain**: Transitioning to self-distribute meat/seafood in 2025, with no material impact on 2025 P&L.


Sprouts Farmers Market, Inc. (SFM) Q4 2024 Earnings Call Transcript

Sprouts Farmers Market (SFM)-30 Oct 24-2024 Q3 Earnings call transcript

Sprouts Farmers Market (SFM)-29 Jul 24-2024 Q2 Earnings call transcript

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Sprouts Farmers Market, Inc. (SFM) Q4 2023 Earnings Call Transcript

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