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

What factors drove the changes in Sprouts Farmers's revenue and profit?

What is the market's earnings forecast for Sprouts Farmers next quarter?

What guidance did Sprouts Farmers's management provide for the next earnings period?

What were the key takeaways from Sprouts Farmers's earnings call?

Did Sprouts Farmers beat or miss consensus estimates last quarter?

What is Sprouts Farmers's gross profit margin?

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

- **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

Sprouts Farmers Market (SFM)-1 May 24-2024 Q1 Earnings call transcript

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

Sprouts Farmers Market (SFM)-31 Oct 23-2023 Q3 Earnings call transcript

Sprouts Farmers Market (SFM)-1 Aug 23-2023 Q2 Earnings call transcript

Sprouts Farmers Market (SFM)-1 May 23-2023 Q1 Earnings call transcript

Sprouts Farmers Market (SFM)-2 Mar 23-2022 Q4 Earnings call transcript

Sprouts Farmers Market (SFM)-9 Nov 22-2022 Q3 Earnings call transcript

Sprouts Farmers Market (SFM)-4 Aug 22-2022 Q2 Earnings call transcript

Sprouts Farmers Market (SFM)-5 May 22-2022 Q1 Earnings call transcript

Sprouts Farmers Market (SFM)-25 Feb 22-2021 Q4 Earnings call transcript

Sprouts Farmers Market (SFM)-5 Nov 21-2021 Q3 Earnings call transcript

Sprouts Farmers Market (SFM)-6 Aug 21-2021 Q2 Earnings call transcript

Sprouts Farmers Market (SFM)-7 May 21-2021 Q1 Earnings call transcript

Sprouts Farmers Market (SFM)-26 Feb 21-2020 Q4 Earnings call transcript

Sprouts Farmers Market (SFM)-28 Oct 20-2020 Q3 Earnings call transcript

Sprouts Farmers Market (SFM)-30 Jul 20-2020 Q2 Earnings call transcript

Sprouts Farmers Market (SFM)-6 May 20-2020 Q1 Earnings call transcript

Sprouts Farmers Market (SFM)-20 Feb 20-2019 Q4 Earnings call transcript

Sprouts Farmers Market (SFM)-30 Oct 19-2019 Q3 Earnings call transcript

Sprouts Farmers Market (SFM)-1 Aug 19-2019 Q2 Earnings call transcript

Sprouts Farmers Market (SFM)-2 May 19-2019 Q1 Earnings call transcript

Sprouts Farmers Market (SFM)-21 Feb 19-2018 Q4 Earnings call transcript

Sprouts Farmers Market (SFM)-1 Nov 18-2018 Q3 Earnings call transcript

Sprouts Farmers Market (SFM)-2 Aug 18-2018 Q2 Earnings call transcript

Sprouts Farmers Market (SFM)-3 May 18-2018 Q1 Earnings call transcript

Sprouts Farmers Market (SFM)-22 Feb 18-2017 Q4 Earnings call transcript

Sprouts Farmers Market (SFM)-2 Nov 17-2017 Q3 Earnings call transcript

SFM

SFM fundamentals

Earnings Call

You can ask Aime