Sprouts Farmers Market Announces $600M Share Repurchase Authorization

Sprouts Farmers Market, Inc.'s board of directors has authorized a new share repurchase program of $600 million of its common shares on May 22, which replaces its current authorization with nearly $120 million remaining. The shares may be purchased on a discretionary basis from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases, privately negotiated transactions or other means, including through Rule 10b5-1 trading plans. This share repurchase program may be commenced, suspended or discontinued at any time and expires on May 22, 2027.

“The extension of our ongoing share repurchase program demonstrates not only our strong cash flow generation, but also the board's confidence in the company’s strategy and potential. We will continue to balance the deployment of capital to spur our growth and drive long-term value for our investors,” said Curtis Valentine, CFO of Sprouts Farmers Market.

The specialty retailer delivered impressive financial results for its first quarter ended March 31. Sales grew by 9%, with comparable-store sales increasing 4% and diluted earnings per share jumping 14%, compared with adjusted diluted earnings per share in the same period last year.

One of the largest and fastest growing specialty retailers of natural and organic food in the United States, Sprouts is on track to open approximately 35 stores by the end of the year. In June, it will introduce two new stores in Philadelphia, and one in Cliffwood, N.J. 

Building on its momentum, the grocer plans to conduct a beta launch of a new loyalty program in its second quarter.