Q2 2026 Sprouts Farmers Market Inc Earnings Call Transcript
Key Points
- New store performance remains strong, with recent vintages comping positive and a robust pipeline of 155 approved new stores.
- E-commerce sales grew over 12% and now represent 16% of total sales, driven by strong partnerships with delivery platforms.
- Innovation and foraging continue to outperform, with 1,300 new items launched and Sprouts brand representing 26% of sales.
- Supply chain advancements, including the Northern California DC and fresh meat self-distribution, are improving control and supporting affordability.
- The company is investing in loyalty and personalization, with early progress in vendor participation and data-driven marketing.
- Comparable store sales declined 1% in Q2, with traffic and units per basket under pressure from a challenging consumer environment.
- The affordability tests produced mixed results, with traffic response developing more gradually than expected.
- Elevated fuel costs are creating a headwind, impacting gross margin and leading to a lowered EBIT outlook.
- The Cyclospora outbreak is impacting sales of lettuces and salads, adding near-term uncertainty.
- Lower-engaged and lower-income customers remain the biggest challenge, with reduced trip frequency and basket size.
Hello and welcome to Sprout's Farmers Market Second Quarter 2026 Earnings Conference Call.
At this time, all participants are in a listen-only mode.
After the speaker's presentation, there will be a question-and-answer session.
To ask the question during the session, you will need to press *11 on your telephone.
You will then hear an automated message advising your hand is raised.
To withdraw your question, please press *11 again.
I would now like to hand the conference over to Susanna Livingston. You may begin.
Thank you, and good afternoon, everyone. We are pleased you are joining Sprouts on our second quarter 2026 earnings call.
Jack Sinclair, Chief Executive Officer Curtis Valentine, Chief Financial Officer and Nick Konap, President and Chief Operating Officer are with me today.
The earnings release announcing our second quarter 2026 results, the webcast of this call, and financial
| 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
