Sprouts Farmers Market posts mixed Q4 results; Shares up 2%

Investing.com -- Sprouts Farmers Market (NASDAQ: SFM) reported fourth-quarter results that topped earnings expectations but came in slightly below revenue estimates, while issuing cautious guidance for early 2026. Shares rose about 2% following the release.

For the 13-week fourth quarter ended December 28, 2025, Sprouts posted diluted EPS of $0.92, ahead of the $0.89 consensus estimate and up from $0.79 a year earlier. Net sales increased 8% year over year to $2.1 billion, slightly below the $2.15 billion analyst forecast. Comparable store sales grew 1.6% in the quarter.

Operating income rose to $123.1 million from $106.5 million a year ago, while net income climbed to $89.8 million. EBITDA for the quarter reached $164.8 million, compared with $142.7 million in the prior-year period. The company opened 13 new stores during the quarter.

"Sprouts delivered strong growth in 2025," said Jack Sinclair, chief executive officer of Sprouts Farmers Market. "These results were a testament to the strength of our business and our team’s commitment to serving our unique target customer. We are committed to helping our customers live and eat better and remain laser focused on executing our strategy in the coming years."

For the full year, Sprouts delivered net sales of $8.8 billion, up 14% from 2024, with comparable store sales growth of 7.3%. Diluted EPS rose to $5.31 from $3.75 the prior year. The company opened 37 new stores in 2025, ending the year with 477 stores across 24 states. Sprouts generated $716 million in operating cash flow and repurchased $472 million of stock, while authorizing a new $1 billion buyback program.

Looking ahead, management signaled a more challenging 2026 environment. For the first quarter of fiscal 2026, Sprouts expects comparable store sales to decline between 3% and 1%, with diluted EPS of $1.66 to $1.70, below the $1.79 consensus estimate. On a 52-week basis, full-year 2026 guidance calls for net sales growth of 4.5% to 6.5%, comparable store sales between -1% and 1%, and diluted EPS of $5.28 to $5.44.

Executives cited tough comparisons and a dynamic macro backdrop as near-term headwinds, even as the company reiterated confidence in its long-term growth strategy and plans to open more than 40 new stores in 2026.

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