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Sprouts Farmers Market shares jump after quarterly profit tops estimates
Sprouts reported fiscal second-quarter net sales of $2.3 billion, with earnings of $1.37 per share, and forecast same-store sales to turn positive in the third quarter.
Sprouts Farmers Market shares rose more than 16% this past week after the natural and organic grocery retailer posted healthier-than-expected results in its most recent quarter, according to Yahoo Finance.
In the fiscal second quarter ended June 28, Sprouts grew net sales 5% year over year to $2.3 billion and opened 7 new stores, bringing its total to 490 locations across 25 states. Comparable sales declined 1%, reflecting difficult prior-year comparisons tied to competitors' supply chain disruptions.
Earnings edged up 1% to $1.37 per share, topping Wall Street's $1.34 estimate. The company also reported gross margin slipping slightly to 38.7%, with higher fuel costs cited as a contributing factor.
Sprouts said operating and free cash flow totaled $369 million and $179 million, respectively, through the first half of 2026. Management expects same-store sales to turn positive in the third quarter and guided for full-year net sales growth of 5.5% to 6.5%, with operating income of $675 million to $685 million and earnings per share of $5.32 to $5.40, supported by 42 net new store openings.