Sprouts Farmers Market Reports 19% Revenue Growth to $2.24 Billion in Latest Quarter

Sprouts Farmers Market, Inc. reported significant financial growth in its latest quarterly results, with net sales reaching $2.24 billion for the thirteen weeks ended March 30, 2025, marking a 19% increase from $1.88 billion in the same period last year. The company's gross profit also saw a substantial rise, totaling $886.4 million, up 23% from $722.3 million a year earlier. This growth was attributed to a combination of new store openings and an 11.7% increase in comparable store sales, which accounted for approximately 93% of total sales during the quarter.

In terms of profitability, Sprouts reported a net income of $180.0 million, a 58% increase compared to $114.1 million in the prior year. The diluted earnings per share rose to $1.81, up from $1.12, reflecting the company's effective management of costs and improved sales performance. Selling, general, and administrative expenses increased by 15% to $623.2 million, primarily due to the expansion of new stores, although these costs represented a smaller percentage of net sales compared to the previous year.

Operationally, Sprouts Farmers Market continued its expansion strategy, operating 443 stores across 24 states as of the end of the reporting period. The company opened three new stores during the quarter, contributing to its growth trajectory. The company has emphasized its commitment to enhancing customer engagement through data analytics and personalized marketing strategies, which are expected to drive further sales growth and customer loyalty.

The company also undertook a significant share repurchase program, buying back 1.57 million shares at an average price of $140.68, totaling approximately $220.6 million. This initiative is part of a broader strategy to return value to shareholders and manage capital effectively. As of March 30, 2025, Sprouts had $287.7 million in cash and cash equivalents, positioning it well for future investments and operational needs.

Looking ahead, Sprouts Farmers Market remains optimistic about its growth prospects, projecting continued expansion in store count and sales. The company plans to invest between $230 million and $250 million in capital expenditures for 2025, focusing on new store openings, remodels, and technology enhancements to support its operational efficiency and customer experience. The management's outlook reflects confidence in the company's strategic initiatives and market positioning, despite potential challenges from inflation and competitive pressures in the grocery sector.