Sprouts SFM Q4 2025 Earnings Call Transcript | The Motley Fool
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 19, 2026
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Sprouts SFM reported strong financial performance in its Q4 2025 earnings call, highlighted by a total sales figure of $2.1 billion, reflecting an 8% year-over-year increase. Comparable store sales rose 1.6%, while e-commerce sales grew 15%, contributing 15.5% of total revenue. The Sprouts Brand accounted for nearly 26% of sales, underscoring its growing influence. However, gross margin dipped to 38% due to inventory shrink and loyalty program pressures. Despite this, net income reached $90 million, with diluted EPS jumping 16% to $0.92.
For the fiscal year, total sales climbed nearly 14% to $8.8 billion, driven by a 7.3% increase in comparable stores and strong new store performance. Gross margin improved 70 basis points to 38.8%, reflecting better inventory management. Earnings per share rose 42% to $5.31, supported by robust operating cash flow of $716 million and strategic capital expenditures of $280 million to $310 million net of landlord reimbursements. The company also returned $472 million to shareholders through share repurchases.
Looking ahead, Sprouts projects 4.5%–6.5% sales growth in 2026, with comparable store sales expected to range between -1% and +1%. At least 40 new stores are planned, including over 140 approved locations. EPS guidance for the year is $5.28–$5.44, reflecting $300 million in share repurchases and a 53rd week impact boosting sales by $200 million and EBIT by $28 million.
While the company achieved significant milestones in 2025, challenges remain. CEO Jack Sinclair noted slowing comp momentum, while CFO Curtis Valentine highlighted economic pressures impacting lower-engaged customers. Q1 2026 guidance expects negative comp sales of -3%
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Originally published on The Motley Fool on 2/19/2026