Sprouts Farmers Market — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for the 13-week quarter ended September 27, 2026, totaled $2.3 billion, representing a 5% increase from the same period in 2025.
• Comparable store sales decreased by 0.9% year-over-year.
• Diluted earnings per share (EPS) were $1.21, compared to $1.22 in the same period in 2025.
• Gross profit was $880.8 million for the quarter, up from $851.1 million in the prior year period.
• Income from operations was $152.8 million, down from $157.4 million in the prior year period.
• Net income for the quarter was $113.4 million, compared to $120.1 million in the prior year period.
• Cash from operations for the 39 weeks ended September 27, 2026, was $555.1 million, compared to $577.5 million in the prior year period.
• Capital expenditures for the 39 weeks ended September 27, 2026, were $284.2 million, compared to $176.1 million in the prior year period.
• EBIT for the 39 weeks ended September 27, 2026, was $542.3 million, compared to $563.1 million in the prior year period.
• EBITDA for the 39 weeks ended September 27, 2026, was $679.9 million, compared to $679.1 million in the prior year period.
• Ended the quarter with $229 million in cash and cash equivalents.
• Had a zero balance on the $600 million revolving credit facility.
• Total assets were $4.46 billion as of September 27, 2026, compared to $4.16 billion as of December 28, 2025.
• Total liabilities were $2.93 billion as of September 27, 2026, compared to $2.76 billion as of December 28, 2025.

Guidance and Future Outlook:

• Fourth Quarter 2026 comparable store sales are projected to be between (2.0)% and (4.0)%.
• Fourth Quarter 2026 diluted EPS is projected to be between $0.47 and $0.51.
• Fiscal year 2026 is a 53-week year, with the extra week falling in the fourth quarter, estimated to add approximately $190 million in sales, $20 million in income before interest and taxes, and $0.16 in diluted EPS.
• Full Year 2026 net sales growth is projected at approximately 4.3%.
• Full Year 2026 comparable store sales are projected to be approximately (1.7)%.
• Full Year 2026 EBIT is projected to be approximately $605 million.
• Full Year 2026 diluted EPS is projected to be approximately $4.80.
• Full Year 2026 unit growth is projected at 42 net new stores.
• Full Year 2026 capital expenditures (net of landlord reimbursements) are projected to be approximately $310 million.

Business Segments and Product Lines:

• Opened 15 new stores during the quarter, bringing the total store count to 504 across 25 states as of September 27, 2026.
• Management noted the strong performance of recent store vintages and continued momentum in unit growth.
• The company operates as a specialty retailer of fresh, natural, and organic food, with a focus on fresh produce and curated assortments including organic, gluten-free, plant-based, and non-GMO products.

Market and Competitive Landscape:

• Management identified a challenging consumer environment and a cyclospora disruption as factors affecting the quarter.
• The company aims to enhance affordability and deepen customer engagement to drive traffic.
• Sprouts Farmers Market is described as one of the largest and fastest-growing specialty retailers of fresh, natural, and organic food in the United States.

Risks and Challenges:

• Forward-looking statements involve risks including the ability to execute on long-term strategy, successfully compete, open new stores, and manage growth.
• Risks include the ability to maintain or improve operating margins, identify and react to consumer preference trends, and manage product and equipment supply disruptions.
• Potential risks include general economic conditions impacting consumer spending, competitive responses, accounting standard changes, inflationary/deflationary trends, and tariffs.

Management Commentary and Tone:

• Jack Sinclair, CEO, acknowledged the challenging consumer environment and cyclospora disruption but expressed confidence in the significant opportunity ahead.
• Management stated they are increasing investments to enhance affordability and deepen customer engagement while building on their differentiated assortment and experience.
• The CEO thanked teams for their dedication and highlighted the opening of a record 15 new stores.

Other Key Points:

• Repurchased 1.1 million shares of common stock during the quarter for a total investment of $89 million, excluding excise tax.
• Total repurchases of common stock for the 39 weeks ended September 27, 2026, were $299.2 million, with an additional $4.2 million paid in excise tax on repurchases.
• The company employs approximately 36,000 team members.
• The company is headquartered in Phoenix, AZ.