Sprouts Farmers Market, Inc. (Nasdaq: SFM), one of the leading healthy grocery retailers in the U.S., announced its financial results for the 13-week third quarter ended September 28, 2025. The company delivered another quarter of solid growth, fueled by expanding store openings, a loyal customer base, and disciplined financial management.
Jack Sinclair, Chief Executive Officer of Sprouts Farmers Market, expressed confidence in the company’s progress and long-term strategy. “We are opening stores nationwide, and our strategy continues to resonate with our target customers, resulting in strong third-quarter performance,” Sinclair said. “Our passionate team members, financial foundation, and disciplined execution will position us to deliver sustainable earnings growth as we navigate strong year-over-year comparisons.”
Third Quarter 2025 Highlights
Sprouts Farmers Market reported net sales of $2.2 billion, marking a 13% increase compared with the same period in 2024. The growth was driven by both comparable store performance and the opening of new locations across the United States.
Comparable store sales increased 5.9%, underscoring the company’s ability to attract repeat customers and maintain relevance amid a competitive retail environment. This growth reflects strong demand for fresh, natural, and organic products — areas where Sprouts continues to lead.
Diluted earnings per share (EPS) came in at $1.22, up from $0.91 in the same quarter last year, highlighting significant profitability improvements. The company’s expanding store footprint and operational efficiency contributed to this strong earnings performance.
During the quarter, Sprouts opened nine new stores, bringing its total store count to 464 stores across 24 states as of September 28, 2025. The company’s expansion efforts remain focused on high-growth markets, ensuring it continues to reach health-conscious consumers across the nation.
Financial Strength, Leverage, and Liquidity
Sprouts Farmers Market reinforced its balance sheet strength during the third quarter of 2025. The company entered into a new $600 million credit facility, featuring terms and conditions substantially similar to its previous agreement. This move enhances financial flexibility while maintaining low leverage levels.
By the end of the quarter, Sprouts held $322 million in cash and cash equivalents, with no outstanding balance on its $600 million revolving credit facility — a testament to the company’s prudent cash management and strong operational performance.
In addition, Sprouts’ Board of Directors authorized a new $1 billion share repurchase program, underscoring management’s confidence in the company’s growth trajectory and commitment to returning value to shareholders. During the third quarter, Sprouts repurchased 0.4 million shares of common stock for a total investment of $50 million, excluding excise taxes.
The company also continued to generate robust cash flow, reporting $577 million in cash from operations and $194 million in capital expenditures, net of landlord reimbursements, year-to-date through September 28, 2025. These funds were primarily allocated toward store development, technological improvements, and enhancing customer experience across locations.
Outlook for Fourth Quarter and Full-Year 2025
Sprouts Farmers Market provided guidance for the remainder of the fiscal year, expecting continued sales growth and consistent profitability despite challenging market conditions.
For the fourth quarter of 2025, Sprouts projects:
- Comparable store sales growth between 0.0% and 2.0%
- Diluted earnings per share in the range of $0.86 to $0.90
For the full year 2025, the company anticipates:
- Net sales growth of approximately 14%
- Comparable store sales growth around 7%
- EBIT between $675 million and $680 million
- Diluted earnings per share between $5.24 and $5.28
- 37 new store openings, continuing the company’s steady expansion strategy
- Capital expenditures (net of landlord reimbursements) between $230 million and $250 million
This outlook underscores Sprouts’ ability to sustain its growth momentum through operational efficiency, an expanding store base, and continued consumer enthusiasm for healthy, high-quality food choices.
Commitment to Growth and Customer Connection
Sprouts Farmers Market has remained steadfast in its mission to inspire healthier living for all. The company’s continued success is a result of its deep understanding of consumer trends and its commitment to making fresh, organic, and natural products accessible and affordable.
Sprouts’ customer base increasingly reflects a growing national movement toward health-conscious and sustainable shopping habits. The company’s stores, known for their open layouts, farmer’s market-style produce displays, and extensive selection of plant-based, gluten-free, and keto-friendly items, have become destinations for consumers seeking freshness, transparency, and value.
The retailer’s strategic expansion into new markets — including both suburban and urban centers — demonstrates its ability to adapt to local demand while maintaining consistent brand standards. By balancing store growth with operational discipline, Sprouts continues to strengthen its market presence and enhance shareholder returns.
Shareholder Returns and Financial Discipline
Sprouts’ disciplined financial approach and share repurchase program reinforce management’s confidence in its long-term strategy. The new $1 billion repurchase authorization provides flexibility to return capital to shareholders while supporting future growth initiatives.
The company’s consistent cash generation and limited debt highlight a solid foundation for continued investment in expansion, technology, and innovation. Sprouts’ prudent capital allocation ensures that even as the company grows rapidly, it maintains strong liquidity and operational stability.
Upcoming Conference Call and Webcast
To discuss these results, Sprouts Farmers Market will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, October 29, 2025. Company executives will provide additional insights into third-quarter financial results, strategic priorities, and business outlook.
A live webcast of the conference call will be available through Sprouts’ Investor Relations webpage. Participants are encouraged to register approximately ten minutes prior to the start of the event.
For those unable to attend live, a webcast replay will be available beginning at approximately 8:00 p.m. Eastern Time on the same day.
About Sprouts Farmers Market, Inc.
Sprouts Farmers Market is one of the fastest-growing specialty retailers in the United States, offering a wide selection of fresh, natural, and organic foods. Since its founding, Sprouts has been dedicated to inspiring healthier living through nutritious, affordable, and sustainably sourced products. With hundreds of stores nationwide, Sprouts continues to redefine the grocery experience by focusing on quality, freshness, and community engagement.
Source Link:https://www.businesswire.com/
