Sprouts Farmers Market Q2 sales edges past estimates on new store openings

Sprouts Farmers Market

29/07/2026 21:14

Overview
U.S. specialty grocer's Q2 sales rose 5%, slightly beating analyst expectations
Q2 diluted EPS rose to $1.37 from $1.35 a year ago
Company repurchased 0.9 mln shares for $70 mln in Q2

Outlook
Sprouts sees Q3 comparable store sales between (0.5)% and 1.5%
Company expects Q3 diluted EPS of $1.20 to $1.24
Sprouts forecasts full-year net sales growth of 5.5% to 6.5%

Result Drivers
NEW STORE OPENINGS - Co said strong performance from new stores contributed to Q2 results
PRODUCT INNOVATION - Continued success of foraging and innovation efforts supported results, per CEO Jack Sinclair
CAUTIOUS CONSUMER ENVIRONMENT - Co cited a cautious consumer environment as a factor impacting results

Company press release: ID:nBw1tvS6sa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Slight Beat*
$2.33 bln
$2.32 bln (13 Analysts)
Q2 EPS
 
$1.37
 
Q2 Net Income
 
$129.20 mln
 
Q2 Gross Profit
 
$900.65 mln
 
Q2 Operating Income
 
$174.17 mln
 
Q2 Pretax Profit
 
$174.11 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the food retail & distribution peer group is "buy"
Wall Street's median 12-month price target for Sprouts Farmers Market Inc is $87.00, about 11.9% above its July 28 closing price of $77.77
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads
July 29 - Jeronimo Martins misses profit estimates as consumers remain cautious
July 29 - Singapore's Sheng Siong H1 revenue rises 11.9% on store expansions
July 29 - Chefs' Warehouse Q2 sales rise 13%, beat estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)