EX-99.1 2 sfm-20250330xex991.htm EX-99.1 Document

Exhibit 99.1
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Investor Contact: Media Contact:
Susannah Livingston media@sprouts.com
(602) 682-1584
susannahlivingston@sprouts.com
Sprouts Farmers Market, Inc. Reports First Quarter 2025 Results
PHOENIX, Ariz. – (Business Wire) – April 30, 2025 – Sprouts Farmers Market, Inc. (Nasdaq: SFM) today reported results for the 13-week first quarter ended March 30, 2025.
"We are delighted with Sprouts’ strong start to 2025," said Jack Sinclair, chief executive officer of Sprouts Farmers Market. "These results highlight the effectiveness of our differentiated strategy and excellent execution. Our team members bring knowledge and passion for healthy eating to our core customers every day, and we remain confident in our strategy as we navigate this current environment.”
First Quarter Highlights:
•Net sales totaled $2.2 billion; a 19% increase from the same period in 2024
•Comparable store sales growth of 11.7%
•Diluted earnings per share of $1.81; compared to diluted earnings per share of $1.12
•Opened 3 new stores, resulting in 443 stores in 24 states as of March 30, 2025

Leverage and Liquidity in First Quarter 2025
•Ended the quarter with $286 million in cash and cash equivalents and zero balance on its $700 million revolving credit facility
•Repurchased 1.6 million shares of common stock for a total investment of $219 million, excluding excise tax
•Generated cash from operations of $299 million and invested $49 million in capital expenditures, net of landlord reimbursement, year-to-date thru March 30, 2025
Second Quarter and Full-Year 2025 Outlook
The following provides information on our second quarter 2025 outlook:
•Comparable store sales growth: 6.5% to 8.5%
•Diluted earnings per share: $1.19 to $1.23
The following provides information on our full-year 2025 outlook:
•Net sales growth: 12.0% to 14.0%
•Comparable store sales growth: 5.5% to 7.5%
•EBIT: $640 million to $660 million
•Diluted earnings per share: $4.94 to $5.10
•Unit growth: At least 35 new stores
•Capital expenditures (net of landlord reimbursements): $230 million to $250 million


First Quarter 2025 Conference Call
Sprouts will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, April 30, 2025, during which Sprouts executives will further discuss first quarter 2025 financial results.
A webcast of the conference call will be available through Sprouts’ investor relations webpage, accessible via the following link. Participants should register on the website approximately ten minutes prior to the start of the webcast.
A webcast replay will be available at approximately 8:00 p.m. Eastern Time on April 30, 2025. This can be accessed with the following link.
Important Information Regarding Outlook
There is no guarantee that Sprouts will achieve its projected financial expectations, which are based on management estimates, currently available information and assumptions that management believes to be reasonable. These expectations are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management. See “Forward-Looking Statements” below.
Forward-Looking Statements
Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact (including, but not limited to, statements to the effect that Sprouts Farmers Market or its management "anticipates," "plans," "estimates," "expects," or "believes," or the negative of these terms and other similar expressions) should be considered forward-looking statements, including, without limitation, statements regarding the company’s outlook, growth, opportunities and long-term strategy. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this release. These risks and uncertainties include, without limitation, the company’s ability to execute on its long-term strategy; the company’s ability to successfully compete in its competitive industry; the company’s ability to successfully open new stores; the company’s ability to manage its growth; the company’s ability to maintain or improve its operating margins; the company’s ability to identify and react to trends in consumer preferences; product supply disruptions; equipment supply disruptions; general economic conditions that impact consumer spending or result in competitive responses; accounting standard changes; potential inflationary and/or deflationary trends; tariffs; and other factors as set forth from time to time in the company’s Securities and Exchange Commission filings, including, without limitation, the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The company intends these forward-looking statements to speak only as of the time of this release and does not undertake to update or revise them as more information becomes available, except as required by law.
Corporate Profile
True to its farm-stand heritage, Sprouts offers a unique grocery experience featuring an open layout with fresh produce at the heart of the store. Sprouts inspires wellness naturally with a carefully curated assortment of better-for-you products paired with purpose-driven people. The healthy grocer continues to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. Headquartered in Phoenix, and one of the largest and fastest growing specialty retailers of fresh, natural and organic food in the United States, Sprouts employs approximately 35,000 team members and operates more than 440 stores in 24 states nationwide. To learn more about Sprouts, and the good it brings communities, visit sprouts.com/about/.


SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Thirteen weeks ended
March 30, 2025March 31, 2024
Net sales$2,236,436 $1,883,808 
Cost of sales1,350,073 1,161,495 
Gross profit886,363 722,313 
Selling, general and administrative expenses623,226 539,771 
Depreciation and amortization (exclusive of depreciation included in cost of sales)35,099 32,232 
Store closure and other costs, net1,706 2,044 
Income from operations226,332 148,266 
Interest (income) expense, net(924)818 
Income before income taxes227,256 147,448 
Income tax provision47,230 33,348 
Net income$180,026 $114,100 
Net income per share:
Basic$1.83 $1.13 
Diluted$1.81 $1.12 
Weighted average shares outstanding:
Basic98,537101,071
Diluted99,719102,024


SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
March 30, 2025December 29, 2024
ASSETS
Current assets:
Cash and cash equivalents$285,663 $265,159 
Accounts receivable, net71,661 30,901 
Inventories340,280 343,329 
Prepaid expenses and other current assets34,689 36,131 
Total current assets732,293 675,520 
Property and equipment, net of accumulated depreciation898,834 895,189 
Operating lease assets, net1,501,951 1,466,903 
Intangible assets208,163 208,094 
Goodwill381,750 381,750 
Other assets15,267 13,243 
Total assets$3,738,258 $3,640,699 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$293,897 $213,414 
Accrued liabilities220,474 216,842 
Accrued salaries and benefits68,214 97,991 
Accrued income tax33,922 — 
Current portion of operating lease liabilities154,151 150,400 
Current portion of finance lease liabilities1,330 1,321 
Total current liabilities771,988 679,968 
Long-term operating lease liabilities1,556,561 1,520,272 
Long-term debt and finance lease liabilities6,913 7,248 
Other long-term liabilities37,160 38,259 
Deferred income tax liability77,654 73,059 
Total liabilities2,450,276 2,318,806 
Commitments and contingencies
Stockholders’ equity:
Undesignated preferred stock; $0.001 par value; 10,000,000 shares authorized, no shares issued and outstanding— — 
Common stock, $0.001 par value; 200,000,000 shares authorized, 98,187,882 shares issued and outstanding, March 30, 2025; 99,255,036 shares issued and outstanding, December 29, 2024
98 99 
Additional paid-in capital814,796 808,140 
Retained earnings473,088 513,654 
Total stockholders’ equity1,287,982 1,321,893 
Total liabilities and stockholders’ equity$3,738,258 $3,640,699 


SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS)
Thirteen weeks ended
March 30, 2025March 31, 2024
Operating activities
Net income$180,026 $114,100 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense36,820 34,522 
Operating lease asset amortization34,689 32,303 
Share-based compensation6,656 6,477 
Deferred income taxes4,595 1,072 
Other non-cash items1,532 496 
Changes in operating assets and liabilities, net of effects from acquisition:
Accounts receivable10,763 8,601 
Inventories3,049 6,996 
Prepaid expenses and other current assets(236)14,691 
Other assets(357)924 
Accounts payable54,084 28,899 
Accrued liabilities6,102 17,642 
Accrued salaries and benefits(29,777)(17,667)
Accrued income tax33,922 8,869 
Operating lease liabilities(41,249)(36,580)
Other long-term liabilities(1,530)(1,650)
Cash flows from operating activities299,089 219,695 
Investing activities
Purchases of property and equipment(59,479)(51,241)
Cash flows used in investing activities(59,479)(51,241)
Financing activities
Payments on finance lease liabilities(326)(253)
Repurchase of common stock(218,762)(60,000)
Proceeds from exercise of stock options— 2,283 
Cash flows used in financing activities(219,088)(57,970)
Increase in cash, cash equivalents, and restricted cash20,522 110,484 
Cash, cash equivalents, and restricted cash at beginning of the period267,213 203,870 
Cash, cash equivalents, and restricted cash at the end of the period$287,735 $314,354 


Non-GAAP Financial Measures
In addition to reporting financial results in accordance with accounting principles generally accepted in the United States (“GAAP”), the company presents EBITDA and EBIT. These measures are not in accordance with, and are not intended as alternatives to, GAAP. The company's management believes that this presentation provides useful information to management, analysts and investors regarding certain additional financial and business trends relating to its results of operations and financial condition. In addition, management uses these measures for reviewing the financial results of the company, and certain of these measures may be used as components of incentive compensation.
The company defines EBITDA as net income before interest expense, provision for income tax, and depreciation, amortization and accretion.
Non-GAAP measures are intended to provide additional information only and do not have any standard meanings prescribed by GAAP. Use of these terms may differ from similar measures reported by other companies. Because of their limitations, non-GAAP measures should not be considered as a measure of discretionary cash available to use to reinvest in the growth of the company’s business, or as a measure of cash that will be available to meet the company’s obligations. Each non-GAAP measure has its limitations as an analytical tool, and they should not be considered in isolation or as a substitute for analysis of the company’s results as reported under GAAP.
The following table shows a reconciliation of EBIT and EBITDA to net income for the thirteen weeks ended March 30, 2025 and March 31, 2024:



SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES
NON-GAAP MEASURE RECONCILIATION
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Thirteen weeks ended
March 30, 2025March 31, 2024
Net income$180,026 $114,100 
Income tax provision47,230 33,348 
Interest (income) expense, net(924)818 
Earnings before interest and taxes (EBIT)226,332 148,266 
Depreciation, amortization and accretion36,820 34,522 
EBITDA$263,152 $182,788 
###

Source: Sprouts Farmers Market, Inc
Phoenix, AZ
4/30/25