Exhibit 99.1
img407723_0a.jpg
Investor Contact: Media Contact:
Susannah Livingston media@sprouts.com
(602) 682-1584
susannahlivingston@sprouts.com
Sprouts Farmers Market, Inc. Reports Third Quarter 2026 Results
PHOENIX, Ariz. – (Business Wire) – October 28, 2026 – Sprouts Farmers Market, Inc. (Nasdaq: SFM) today reported results for the 13-week third quarter ended September 27, 2026.
“While a challenging consumer environment and the cyclospora disruption affected the quarter, we recognize the need to improve our performance and are taking action to strengthen execution and drive traffic,” said Jack Sinclair, chief executive officer of Sprouts Farmers Market. “We are increasing investments to enhance affordability and deepen customer engagement, while building on the differentiated assortment and experience that define Sprouts. I want to thank our teams for their dedication, including opening a record 15 new stores during the quarter. The strong performance of our recent store vintages and continued momentum in unit growth reinforce our confidence in the significant opportunity ahead for Sprouts.”
Third Quarter Highlights:
•Net sales totaled $2.3 billion, a 5% increase from the same period in 2025
•Comparable store sales of (0.9)%
•Diluted earnings per share of $1.21, compared to diluted earnings per share of $1.22 in the same period in 2025
•Opened 15 new stores, resulting in 504 stores in 25 states as of September 27, 2026
Leverage and Liquidity in Third Quarter 2026
•Ended the quarter with $229 million in cash and cash equivalents and zero balance on our $600 million revolving credit facility
•Repurchased 1.1 million shares of common stock for a total investment of $89 million, excluding excise tax
•Generated cash from operations of $555 million and invested $275 million in capital expenditures, net of landlord reimbursement, year-to-date through September 27, 2026
Fourth Quarter and Full-Year 2026 Outlook
The following provides information on our fourth quarter 2026 outlook (on a 13-week basis):
•Comparable store sales: (2.0)% to (4.0)%
•Diluted earnings per share: $0.47 to $0.51
The Company notes that fiscal year 2026 will be a 53-week year, with the extra week falling in the fourth quarter.
We estimate the impact from the 53rd week to be approximately $190 million in sales, $20 million in income before interest and taxes, and $0.16 in diluted earnings per share.

The following provides information on our full year 2026 outlook (on a 52-week basis):
•Net sales growth: ~4.3%


•Comparable store sales: ~(1.7)%
•EBIT: ~$605 million
•Diluted earnings per share: ~$4.80
•Unit growth: 42 net new stores
•Capital expenditures (net of landlord reimbursements): ~$310 million
Third Quarter 2026 Conference Call
Sprouts will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, October 28, 2026, during which Sprouts executives will further discuss third quarter 2026 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 October 28, 2026. 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," "will," "believes," or "projects," 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 in a timely manner; 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
Sprouts Farmers Market is one of the largest and fastest growing specialty retailers of fresh, natural and organic food in the United States. Sprouts helps people live and eat better with fresh produce at the heart of the store and delicious discoveries for every dietary lifestyle. Always foraging for what’s fresh and innovative, Sprouts offers a carefully curated assortment of products that inspire wellness naturally, including organic, gluten-free, plant-based and non-GMO favorites. Headquartered in Phoenix, AZ, Sprouts employs approximately 36,000 team members and operates more than 500 stores in 25 states nationwide. To learn more about Sprouts and the role it plays in its communities, visit sprouts.com/about/.


SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Thirteen weeks endedThirty-nine weeks ended
September 27, 2026September 28, 2025September 27, 2026September 28, 2025
Net sales$2,304,720 $2,200,430 $6,959,703 $6,657,468 
Cost of sales1,423,926 1,349,379 4,260,985 4,057,454 
Gross profit880,794 851,051 2,698,718 2,600,014 
Selling, general and administrative expenses683,262 653,329 2,024,676 1,921,682 
Depreciation and amortization (exclusive of depreciation included in cost of sales)44,916 38,862 130,024 110,567 
Store closure and other costs/(credits), net(169)1,462 1,752 4,679 
Income from operations152,785 157,398 542,266 563,086 
Interest expense/(income), net1,419 (690)1,358 (2,045)
Income before income taxes151,366 158,088 540,908 565,131 
Income tax provision37,945 37,972 134,568 131,286 
Net income$113,421 $120,116 $406,340 $433,845 
Net income per share:
Basic$1.22 $1.23 $4.32 $4.43 
Diluted$1.21 $1.22 $4.30 $4.38 
Weighted average shares outstanding:
Basic93,12897,67293,97698,023
Diluted93,66698,71594,55699,086


SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
September 27, 2026December 28, 2025
ASSETS
Current assets:
Cash and cash equivalents$228,664 $257,282 
Accounts receivable, net31,539 65,221 
Inventories440,434 427,095 
Prepaid expenses and other current assets35,229 60,306 
Total current assets735,866 809,904 
Property and equipment, net of accumulated depreciation1,246,011 1,085,356 
Operating lease assets, net1,863,438 1,652,732 
Intangible assets208,215 208,215 
Goodwill381,750 381,750 
Other assets23,781 20,692 
Total assets$4,459,061 $4,158,649 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$224,740 $291,033 
Accrued liabilities272,845 304,419 
Accrued salaries and benefits65,501 96,017 
Current portion of operating lease liabilities192,553 177,263 
Current portion of finance lease and other finance obligations3,509 2,071 
Total current liabilities759,148 870,803 
Long-term operating lease liabilities1,909,922 1,682,425 
Long-term debt and other finance obligations129,577 81,585 
Other long-term liabilities44,656 40,283 
Deferred income tax liability86,430 80,479 
Total liabilities2,929,733 2,755,575 
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, 92,673,774 shares issued and outstanding, September 27, 2026; 95,926,024 shares issued and outstanding, December 28, 2025
93 96 
Additional paid-in capital863,652 841,848 
Retained earnings665,583 561,130 
Total stockholders’ equity1,529,328 1,403,074 
Total liabilities and stockholders’ equity$4,459,061 $4,158,649 


SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS)
Thirty-nine weeks ended
September 27, 2026September 28, 2025
Operating activities
Net income$406,340 $433,845 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense137,671 116,003 
Operating lease asset amortization121,171 107,866 
Share-based compensation19,465 22,045 
Deferred income taxes5,951 (488)
Other non-cash items3,819 1,643 
Changes in operating assets and liabilities:
Accounts receivable8,495 24,688 
Inventories(13,339)(56,608)
Prepaid expenses and other current assets25,836 5,310 
Other assets(3,647)(3,928)
Accounts payable4,819 23,231 
Accrued liabilities(34,660)23,496 
Accrued salaries and benefits(30,516)(8,397)
Accrued income tax— 11,522 
Operating lease liabilities(102,885)(123,680)
Other long-term liabilities6,607 923 
Cash flows provided by operating activities555,127 577,471 
Investing activities
Purchases of property and equipment(284,210)(176,081)
Cash flows used in investing activities(284,210)(176,081)
Financing activities
Payments on finance lease liabilities(598)(793)
Repurchase of common stock(299,221)(341,925)
Payments of excise tax on repurchases of common stock(4,172)(2,091)
Proceeds from exercise of stock options2,339 1,686 
Other financing activities1,100 — 
Cash flows used in financing activities(300,552)(343,123)
(Decrease)/increase in cash, cash equivalents, and restricted cash(29,635)58,267 
Cash, cash equivalents, and restricted cash at beginning of the period260,894 267,213 
Cash, cash equivalents, and restricted cash at the end of the period$231,259 $325,480 


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 (income) expense, net, provision for income tax, and depreciation, amortization and accretion. The company defines EBIT as net income before interest (income) expense, net and provision for income tax.
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 and thirty-nine weeks ended September 27, 2026 and September 28, 2025:



SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES
NON-GAAP MEASURE RECONCILIATION
(UNAUDITED)
(IN THOUSANDS)
Thirteen weeks endedThirty-nine weeks ended
September 27, 2026September 28, 2025September 27, 2026September 28, 2025
Net income$113,421 $120,116 $406,340 $433,845 
Income tax provision37,945 37,972 134,568 131,286 
Interest (income)/expense, net1,419 (690)1,358 (2,045)
Earnings before interest and taxes (EBIT)152,785 157,398 542,266 563,086 
Depreciation, amortization and accretion47,720 40,739 137,671 116,003 
EBITDA$200,505 $198,137 $679,937 $679,089 
###

Source: Sprouts Farmers Market, Inc.
Phoenix, AZ
10/28/26