Q1 2026 Sprouts Farmers Market Inc Earnings Call Transcript
Key Points
- Sprouts Farmers Market Inc (SFM) reported a 4% increase in total sales for the first quarter, reaching $2.3 billion, driven by strong new store performance.
- E-commerce sales grew by 10%, representing approximately 16% of total quarterly sales, indicating a robust online presence.
- The Sprouts brand continues to perform well, growing faster than the rest of the business and accounting for more than 26% of total sales.
- The company successfully launched 1,500 new items this year, including innovative products like regenerative organic certified coffee and seed-oil-free hummus.
- Sprouts Farmers Market Inc (SFM) has a strong pipeline with nearly 150 new stores approved and more than 105 executed leases, indicating future growth potential.
- Comparable store sales declined by 1.7%, partially offsetting the overall sales growth.
- Gross margin decreased by 20 basis points to 39.4%, primarily due to loyalty investments and unfavorable shrink performance.
- SG&A expenses increased by $36 million, resulting in a 42 basis points deleverage compared to the same period last year.
- Net income decreased by 6% compared to the same period last year, with diluted earnings per share at $1.71.
- The company expects EBIT margin pressure in the second quarter due to fixed cost deleverage from lower comp sales and higher fuel costs.
Good day, and thank you for standing by. Welcome to the Sprouts Farmers Market first quarter 2026 earnings conference call. (Operator Instructions) Please be advised that today's call is being recorded.
I would now like to hand it over to our first speaker, Susannah Livingston. Please go ahead.
Thank you, and good afternoon, everyone. We are pleased you are joining Sprouts on our first quarter 2026 earnings call.
Jack Sinclair, Chief Executive Officer; Curtis Valentine, Chief Financial Officer; and Nick Konat, President and Chief Operating Officer, are with me today.
The earnings release announcing our first quarter 2026 results, the webcast of this call, and financial slides can be accessed through the Investor Relations section of our website @investors.sprouts.com. During this call, management may make certain forward-looking statements, including statements regarding our expectations for 2026 and beyond. These statements involve
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
