Sprouts Farmers Market Equips Itself for Expansion
Consumers prioritizing quality and healthy options are driving growth at Sprouts Farmers Market. The specialty grocer has reported its sales jumped 19%, totaling $2.2 billion, in first quarter ended March 30.
According to the company, this growth was driven by an 11.7% increase in comparable-store sales and robust new store performance. During Q1, Sprouts opened three new locations, ending the quarter with 443 stores in 24 states. The company's private label also contributed 24% to total sales.
Diluted earnings per share reached $1.81 reflecting a 62% increase compared to the same period last year.
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Customer engagement remains central to Sprouts’ strategy, with the retailer currently testing a loyalty program. “We are continuing to be more data driven as we analyze new customer information during our test and learn phase,” said Sprouts CEO Jack Sinclair during the company’s earnings call. “In the second quarter, we plan to enhance the customer experience and prepare for our planned launch in the third quarter.”
Sprouts is also laying the groundwork to self distribute its meat and seafood through its distribution centers, allowing for greater control over products.
“We’re on track to begin sourcing from our first Sprouts DC in the third quarter,” said Sinclair. “Additionally, we have begun the process to expand our Northern California DC capacity in 2026, which will complete the initial meat and seafood in sourcing journey, as well as supporting future growth in that region.”
Regarding the ongoing tariff strife, the company reported minimal impact from tariffs as most of its inventory comes from the United States.
Looking ahead, Sprouts expects total sales growth to be 12%-14% in 2025, and comp sales in the range of 5.5%-7.5%. The healthy grocer plans to open at least 35 new stores for the year.
Sinclair also made mention during the earnings call of continuing to expand the company’s strong pipeline, with nearly 120 stores already approved and more than 85 leases signed. “While the openings in 2025 will enhance store density in our existing footprint, we are also looking towards expansion in new regions as we develop market plans for the Midwest and the Northeast,” he said.
In the meantime, the grocer is getting ready to open a new store in Santa Clarita, Calif., on Friday, May 9. In June, new store openings are planned for Philadelphia, Dallas and Burleson, Texas.
For the second quarter of the year, thus far, Sprouts continues to see solid customer engagement and expects comp sales to be in the range of approximately 6.5%-8.5% and earnings per share between $1.19-$1.23.
Sprouts CFO Curtis Valentine added some perspective looking ahead to the back half of 2025: “We believe our strong financial position and execution of our strategic initiatives gives us flexibility to navigate uncertainties that may arise from the macro environment,” he said. “We are effectively managing our expenses while continuing to look for investment opportunities that will drive long term sustainable earnings growth.”
Phoenix-based Sprouts is considered one of the largest and fastest-growing specialty retailers of fresh, natural and organic food in the United States. It employs approximately 35,000 associates and operates more than 440 stores in 24 states nationwide. The grocer is No. 51 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
