Sprouts Farmers Market (SFM) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 increased 4% year-over-year to $2.33 billion, driven by new store openings, though comparable store sales declined 1.7%.

• Diluted EPS for Q1 2026 was $1.71, down from $1.81 in the prior year, with net income at $163.7 million.

• Six new stores opened in Q1, bringing the total to 483 across 25 states, with strong performance in new markets.

• Gross margin was 39.4%, down 20 basis points year-over-year due to loyalty investments and shrink.

• Strategic investments in talent, technology, loyalty programs, and self-distribution of meat are ongoing.

Financial highlights

• Gross profit for Q1 2026 was $917.3 million, up 3% year-over-year; SG&A increased 6% to $658.8 million.

• EBIT was $215 million with a margin of 9.2%; net income was $163.7 million; EBITDA was $260 million.

• Operating cash flow was $235 million; capital expenditures were $98 million net of landlord reimbursement.

• Cash and cash equivalents at quarter end were $252 million.

• Depreciation and amortization expense increased 20% to $42 million, reflecting investments in new and remodeled stores.

Outlook and guidance

• Full-year 2026 net sales growth projected at 4.5% to 6.5%; comparable store sales between -1% and 1%.

• Over 40 new store openings planned for 2026.

• EBIT guidance: $675–$695 million; diluted EPS outlook raised to $5.32–$5.48, assuming $300 million in share repurchases.

• Q2 2026 comparable store sales expected between -2% and 0%; EPS between $1.32 and $1.36.

• 53rd week in fiscal 2026 expected to add $200 million in sales, $28 million in EBIT, and $0.21 in EPS.