Sprouts Farmers Market ($SFM (+0,64 %) ) reported impressive financial results for the first quarter of 2025, with earnings per share (EPS) significantly exceeding expectations. The company reported EPS of USD 1.81, beating the forecast of USD 1.54. At USD 2.2 billion, turnover was in line with forecasts. Despite the jump in profits, Sprouts' shares fell by 1.73% to USD 168.04 in after-hours trading, indicating a cautious market reaction.
- Sprouts Farmers Market's Q1 2025 EPS beat analysts' expectations by 17.5%.
- Sales totaled $2.2 billion, in line with forecasts, representing a 19% year-over-year increase.
- The share price fell by 1.73% in after-hours trading, indicating mixed investor sentiment.
- The company continues to expand its product offering with a focus on health and wellness.
- Sprouts plans to open at least 35 new stores in 2025.
Company performance
Sprouts Farmers Market delivered a robust performance in the first quarter of 2025, characterized by a 19% year-on-year increase in total sales. The company's strategy of targeting health-conscious consumers is paying off, with comparable store sales up 11.7%. The focus on unique product features and competitive pricing has strengthened its position in the market.
- Sales: 2.2 billion US dollars, an increase of 19% year-on-year.
- Earnings per share: 1.81 US dollars, an increase of 62% compared to the previous year.
- Gross margin: 39.6%, an improvement of 129 basis points.
- Operating cash flow: 299 million US dollars.
- Share buy-backs: USD 219 million, totaling 1.6 million shares.
Outlook & forecast
For 2025, Sprouts Farmers Market expects sales growth of 12-14%. The company plans to open at least 35 new stores and expects comparable store sales to increase by 5.5-7.5%. Earnings before interest and taxes (EBIT) are forecast to be between USD 640 million and USD 660 million, with EPS expected to be between USD 4.94 and USD 5.10.
Management statements
CEO Jack Sinclair expressed confidence in the company's strategic direction and stated: "We believe we can be successful in the future under any circumstances." He emphasized the importance of their health-conscious target customers, noting, "Our strategic commitment to our health-conscious target customers is clearly resonating." Sinclair also highlighted the potential of their loyalty program, saying: "We are increasingly convinced that loyalty customers shop more often, grow faster and spend more."
