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SEC filingSprouts Farmers Market reported Q1 2026 net sales of $2.3 billion, up 4% year-over-year, but with negative comparable store sales of (1.7)% and diluted EPS of $1.71, down from $1.81, alongside Q2 and full-year guidance.
Sprouts Farmers Market's Q1 2026 results showed net sales growth of 4% to $2.3 billion, driven primarily by 6 new store openings, though comparable store sales declined 1.7%, indicating softer traffic amid a focus on accelerating customer engagement and product discovery. Gross profit rose to $917 million with a 39.4% margin, but operating income fell to $215 million from $226 million year-over-year due to higher SG&A expenses at $659 million, up from $623 million, partly from new store investments and supply chain initiatives. CEO Jack Sinclair noted the quarter aligned with expectations, emphasizing strategy execution in supply chain advantages like self-distribution of meat and loyalty program adoption, with confidence in sequential improvement through 2026. Balance sheet remains strong with $252 million cash, zero revolver utilization, enabling $140 million in share repurchases of 1.9 million shares. Guidance reflects caution with Q2 comps at (2)% to 0% and EPS $1.32-$1.36, while full-year targets low-double-digit growth with 4.5-6.5% sales increase, EBIT $675-695 million, EPS $5.32-$5.48 on a 52-week basis, and 40+ new stores. The 53-week fiscal year adds ~$200 million sales and $0.21 EPS in Q4. Non-GAAP reconciliations confirm no special items impacted Q1 figures, underscoring operational execution amid competitive pressures.