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Sprouts Farmers Market, Inc. Reports First Quarter 2025 Results

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PHOENIX--(BUSINESS WIRE)-- Sprouts Farmers Market, Inc. (Nasdaq: SFM) today reported results for the 13-week first quarter ended March 30, 2025.

“We are delighted with Sprouts� strong start to 2025,� said Jack Sinclair, chief executive officer of Sprouts Farmers Market. “These results highlight the effectiveness of our differentiated strategy and excellent execution. Our team members bring knowledge and passion for healthy eating to our core customers every day, and we remain confident in our strategy as we navigate this current environment.�

First Quarter Highlights:

  • Net sales totaled $2.2 billion; a 19% increase from the same period in 2024
  • Comparable store sales growth of 11.7%
  • Diluted earnings per share of $1.81; compared to diluted earnings per share of $1.12
  • Opened 3 new stores, resulting in 443 stores in 24 states as of March 30, 2025

Leverage and Liquidity in First Quarter 2025

  • Ended the quarter with $286 million in cash and cash equivalents and zero balance on its $700 million revolving credit facility
  • Repurchased 1.6 million shares of common stock for a total investment of $219 million, excluding excise tax
  • Generated cash from operations of $299 million and invested $49 million in capital expenditures, net of landlord reimbursement, year-to-date thru March 30, 2025

Second Quarter and Full-Year 2025 Outlook

The following provides information on our second quarter 2025 outlook:

  • Comparable store sales growth: 6.5% to 8.5%
  • Diluted earnings per share: $1.19 to $1.23

The following provides information on our full-year 2025 outlook:

  • Net sales growth: 12.0% to 14.0%
  • Comparable store sales growth: 5.5% to 7.5%
  • EBIT: $640 million to $660 million
  • Diluted earnings per share: $4.94 to $5.10
  • Unit growth: At least 35 new stores
  • Capital expenditures (net of landlord reimbursements): $230 million to $250 million

First Quarter 2025 Conference Call

Sprouts will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, April 30, 2025, during which Sprouts executives will further discuss first quarter 2025 financial results.

A webcast of the conference call will be available through Sprouts� investor relations webpage, accessible via the following . Participants should register on the website approximately ten minutes prior to the start of the webcast.

A webcast replay will be available at approximately 8:00 p.m. Eastern Time on April 30, 2025. This can be accessed with the following .

Important Information Regarding Outlook

There is no guarantee that Sprouts will achieve its projected financial expectations, which are based on management estimates, currently available information and assumptions that management believes to be reasonable. These expectations are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management. See “Forward-Looking Statements� below.

Forward-Looking Statements

Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact (including, but not limited to, statements to the effect that Sprouts Farmers Market or its management "anticipates," "plans," "estimates," "expects," or "believes," or the negative of these terms and other similar expressions) should be considered forward-looking statements, including, without limitation, statements regarding the company’s outlook, growth, opportunities and long-term strategy. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this release. These risks and uncertainties include, without limitation, the company’s ability to execute on its long-term strategy; the company’s ability to successfully compete in its competitive industry; the company’s ability to successfully open new stores; the company’s ability to manage its growth; the company’s ability to maintain or improve its operating margins; the company’s ability to identify and react to trends in consumer preferences; product supply disruptions; equipment supply disruptions; general economic conditions that impact consumer spending or result in competitive responses; accounting standard changes; potential inflationary and/or deflationary trends; tariffs; and other factors as set forth from time to time in the company’s Securities and Exchange Commission filings, including, without limitation, the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The company intends these forward-looking statements to speak only as of the time of this release and does not undertake to update or revise them as more information becomes available, except as required by law.

Corporate Profile

True to its farm-stand heritage, Sprouts offers a unique grocery experience featuring an open layout with fresh produce at the heart of the store. Sprouts inspires wellness naturally with a carefully curated assortment of better-for-you products paired with purpose-driven people. The healthy grocer continues to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. Headquartered in Phoenix, and one of the largest and fastest growing specialty retailers of fresh, natural and organic food in the United States, Sprouts employs approximately 35,000 team members and operates more than 440 stores in 24 states nationwide. To learn more about Sprouts, and the good it brings communities, visit .

SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Ìý

Ìý

Thirteen weeks ended

Ìý

March 30, 2025

Ìý

March 31, 2024

Net sales

$

2,236,436

Ìý

Ìý

$

1,883,808

Cost of sales

Ìý

1,350,073

Ìý

Ìý

Ìý

1,161,495

Ìý

Gross profit

Ìý

886,363

Ìý

Ìý

Ìý

722,313

Ìý

Selling, general and administrative expenses

Ìý

623,226

Ìý

Ìý

Ìý

539,771

Ìý

Depreciation and amortization (exclusive of depreciation included in cost of sales)

Ìý

35,099

Ìý

Ìý

Ìý

32,232

Ìý

Store closure and other costs, net

Ìý

1,706

Ìý

Ìý

Ìý

2,044

Ìý

Income from operations

Ìý

226,332

Ìý

Ìý

Ìý

148,266

Ìý

Interest (income) expense, net

Ìý

(924

)

Ìý

Ìý

818

Ìý

Income before income taxes

Ìý

227,256

Ìý

Ìý

Ìý

147,448

Ìý

Income tax provision

Ìý

47,230

Ìý

Ìý

Ìý

33,348

Ìý

Net income

$

180,026

Ìý

Ìý

$

114,100

Ìý

Net income per share:

Ìý

Ìý

Ìý

Basic

$

1.83

Ìý

Ìý

$

1.13

Ìý

Diluted

$

1.81

Ìý

Ìý

$

1.12

Ìý

Weighted average shares outstanding:

Ìý

Ìý

Ìý

Basic

Ìý

98,537

Ìý

Ìý

Ìý

101,071

Ìý

Diluted

Ìý

99,719

Ìý

Ìý

Ìý

102,024

Ìý

Ìý

SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

Ìý

Ìý

March 30, 2025

Ìý

December 29, 2024

ASSETS

Ìý

Ìý

Ìý

Current assets:

Ìý

Ìý

Ìý

Cash and cash equivalents

$

285,663

Ìý

$

265,159

Accounts receivable, net

Ìý

71,661

Ìý

Ìý

Ìý

30,901

Ìý

Inventories

Ìý

340,280

Ìý

Ìý

Ìý

343,329

Ìý

Prepaid expenses and other current assets

Ìý

34,689

Ìý

Ìý

Ìý

36,131

Ìý

Total current assets

Ìý

732,293

Ìý

Ìý

Ìý

675,520

Ìý

Property and equipment, net of accumulated depreciation

Ìý

898,834

Ìý

Ìý

Ìý

895,189

Ìý

Operating lease assets, net

Ìý

1,501,951

Ìý

Ìý

Ìý

1,466,903

Ìý

Intangible assets

Ìý

208,163

Ìý

Ìý

Ìý

208,094

Ìý

Goodwill

Ìý

381,750

Ìý

Ìý

Ìý

381,750

Ìý

Other assets

Ìý

15,267

Ìý

Ìý

Ìý

13,243

Ìý

Total assets

$

3,738,258

Ìý

Ìý

$

3,640,699

Ìý

LIABILITIES AND STOCKHOLDERS� EQUITY

Ìý

Ìý

Ìý

Current liabilities:

Ìý

Ìý

Ìý

Accounts payable

$

293,897

Ìý

Ìý

$

213,414

Ìý

Accrued liabilities

Ìý

220,474

Ìý

Ìý

Ìý

216,842

Ìý

Accrued salaries and benefits

Ìý

68,214

Ìý

Ìý

Ìý

97,991

Ìý

Accrued income tax

Ìý

33,922

Ìý

Ìý

Ìý

�

Ìý

Current portion of operating lease liabilities

Ìý

154,151

Ìý

Ìý

Ìý

150,400

Ìý

Current portion of finance lease liabilities

Ìý

1,330

Ìý

Ìý

Ìý

1,321

Ìý

Total current liabilities

Ìý

771,988

Ìý

Ìý

Ìý

679,968

Ìý

Long-term operating lease liabilities

Ìý

1,556,561

Ìý

Ìý

Ìý

1,520,272

Ìý

Long-term debt and finance lease liabilities

Ìý

6,913

Ìý

Ìý

Ìý

7,248

Ìý

Other long-term liabilities

Ìý

37,160

Ìý

Ìý

Ìý

38,259

Ìý

Deferred income tax liability

Ìý

77,654

Ìý

Ìý

Ìý

73,059

Ìý

Total liabilities

Ìý

2,450,276

Ìý

Ìý

Ìý

2,318,806

Ìý

Commitments and contingencies

Ìý

Ìý

Ìý

Stockholders� equity:

Ìý

Ìý

Ìý

Undesignated preferred stock; $0.001 par value; 10,000,000 shares authorized, no shares issued and outstanding

Ìý

�

Ìý

Ìý

Ìý

�

Ìý

Common stock, $0.001 par value; 200,000,000 shares authorized, 98,187,882 shares issued and outstanding, March 30, 2025; 99,255,036 shares issued and outstanding, December 29, 2024

Ìý

98

Ìý

Ìý

Ìý

99

Ìý

Additional paid-in capital

Ìý

814,796

Ìý

Ìý

Ìý

808,140

Ìý

Retained earnings

Ìý

473,088

Ìý

Ìý

Ìý

513,654

Ìý

Total stockholders� equity

Ìý

1,287,982

Ìý

Ìý

Ìý

1,321,893

Ìý

Total liabilities and stockholders� equity

$

3,738,258

Ìý

Ìý

$

3,640,699

Ìý

Ìý

SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(IN THOUSANDS)

Ìý

Ìý

Thirteen weeks ended

Ìý

March 30, 2025

Ìý

March 31, 2024

Operating activities

Ìý

Ìý

Ìý

Net income

$

180,026

Ìý

Ìý

$

114,100

Ìý

Adjustments to reconcile net income to net cash provided by operating activities:

Ìý

Ìý

Ìý

Depreciation and amortization expense

Ìý

36,820

Ìý

Ìý

Ìý

34,522

Ìý

Operating lease asset amortization

Ìý

34,689

Ìý

Ìý

Ìý

32,303

Ìý

Share-based compensation

Ìý

6,656

Ìý

Ìý

Ìý

6,477

Ìý

Deferred income taxes

Ìý

4,595

Ìý

Ìý

Ìý

1,072

Ìý

Other non-cash items

Ìý

1,532

Ìý

Ìý

Ìý

496

Ìý

Changes in operating assets and liabilities, net of effects from acquisition:

Ìý

Ìý

Ìý

Accounts receivable

Ìý

10,763

Ìý

Ìý

Ìý

8,601

Ìý

Inventories

Ìý

3,049

Ìý

Ìý

Ìý

6,996

Ìý

Prepaid expenses and other current assets

Ìý

(236

)

Ìý

Ìý

14,691

Ìý

Other assets

Ìý

(357

)

Ìý

Ìý

924

Ìý

Accounts payable

Ìý

54,084

Ìý

Ìý

Ìý

28,899

Ìý

Accrued liabilities

Ìý

6,102

Ìý

Ìý

Ìý

17,642

Ìý

Accrued salaries and benefits

Ìý

(29,777

)

Ìý

Ìý

(17,667

)

Accrued income tax

Ìý

33,922

Ìý

Ìý

Ìý

8,869

Ìý

Operating lease liabilities

Ìý

(41,249

)

Ìý

Ìý

(36,580

)

Other long-term liabilities

Ìý

(1,530

)

Ìý

Ìý

(1,650

)

Cash flows from operating activities

Ìý

299,089

Ìý

Ìý

Ìý

219,695

Ìý

Investing activities

Ìý

Ìý

Ìý

Purchases of property and equipment

Ìý

(59,479

)

Ìý

Ìý

(51,241

)

Cash flows used in investing activities

Ìý

(59,479

)

Ìý

Ìý

(51,241

)

Financing activities

Ìý

Ìý

Ìý

Payments on finance lease liabilities

Ìý

(326

)

Ìý

Ìý

(253

)

Repurchase of common stock

Ìý

(218,762

)

Ìý

Ìý

(60,000

)

Proceeds from exercise of stock options

Ìý

�

Ìý

Ìý

Ìý

2,283

Ìý

Cash flows used in financing activities

Ìý

(219,088

)

Ìý

Ìý

(57,970

)

Increase in cash, cash equivalents, and restricted cash

Ìý

20,522

Ìý

Ìý

Ìý

110,484

Ìý

Cash, cash equivalents, and restricted cash at beginning of the period

Ìý

267,213

Ìý

Ìý

Ìý

203,870

Ìý

Cash, cash equivalents, and restricted cash at the end of the period

$

287,735

Ìý

Ìý

$

314,354

Ìý

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with accounting principles generally accepted in the United States (“GAAP�), the company presents EBITDA and EBIT. These measures are not in accordance with, and are not intended as alternatives to, GAAP. The company's management believes that this presentation provides useful information to management, analysts and investors regarding certain additional financial and business trends relating to its results of operations and financial condition. In addition, management uses these measures for reviewing the financial results of the company, and certain of these measures may be used as components of incentive compensation.

The company defines EBITDA as net income before interest expense, provision for income tax, and depreciation, amortization and accretion.

Non-GAAP measures are intended to provide additional information only and do not have any standard meanings prescribed by GAAP. Use of these terms may differ from similar measures reported by other companies. Because of their limitations, non-GAAP measures should not be considered as a measure of discretionary cash available to use to reinvest in the growth of the company’s business, or as a measure of cash that will be available to meet the company’s obligations. Each non-GAAP measure has its limitations as an analytical tool, and they should not be considered in isolation or as a substitute for analysis of the company’s results as reported under GAAP.

The following table shows a reconciliation of EBIT and EBITDA to net income for the thirteen weeks ended March 30, 2025 and March 31, 2024:

SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

NON-GAAP MEASURE RECONCILIATION

(UNAUDITED)

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Ìý

Ìý

Thirteen weeks ended

Ìý

March 30, 2025

Ìý

March 31, 2024

Net income

$

180,026

Ìý

Ìý

$

114,100

Income tax provision

Ìý

47,230

Ìý

Ìý

Ìý

33,348

Ìý

Interest (income) expense, net

Ìý

(924

)

Ìý

Ìý

818

Ìý

Earnings before interest and taxes (EBIT)

Ìý

226,332

Ìý

Ìý

Ìý

148,266

Ìý

Depreciation, amortization and accretion

Ìý

36,820

Ìý

Ìý

Ìý

34,522

Ìý

EBITDA

$

263,152

Ìý

Ìý

$

182,788

Ìý

Ìý

Investor Contact:

Susannah Livingston

(602) 682-1584

[email protected]

Media Contact:

[email protected]

Source: Sprouts Farmers Market

Sprouts Farmers

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