Sprouts Farmers Market reported strong fourth-quarter earnings that exceeded expectations, driven by significant sales growth and strategic expansion initiatives.
Sprouts Farmers Market (SFM), a specialty grocer known for emphasizing natural and organic products, disclosed its fourth-quarter earnings on February 20, 2025. The company’s earnings per share (EPS) stood at $0.79, surpassing analysts’ predictions of $0.73, while revenue reached $2.0 billion, exceeding the projected $1.96 billion. The quarter’s performance was buoyed by robust growth in comparable store sales and strategic store expansions.
In terms of specific metrics, the EPS increased by 61.2% compared to the same quarter the previous year, and revenue rose by 18%, climbing from $1.7 billion to $2.0 billion. Notably, comparable store sales experienced a growth of 11.5%.
Sprouts Farmers Market is a grocery chain that focuses on natural and organic foods, emphasizing distinctive products and wellness-oriented groceries. The company strategically targets locations with a high concentration of health-conscious consumers. Recent initiatives have included market expansion and an increased emphasis on sustainability and customer engagement. Operating 440 stores across 24 states, Sprouts has constantly enhanced its product offerings to remain competitive.
In the fourth quarter of 2024, Sprouts achieved several notable milestones. The revenue saw an 18% increase from the prior year’s $1.7 billion, boosted by an impressive 11.5% growth in comparable store sales. The company’s EPS rose from the previous year’s $0.49 to $0.79. These financial gains were supported by the opening of 12 new stores during the quarter.
Furthermore, Sprouts expanded its product range by introducing approximately 7,100 new items, contributing to diversified revenue streams. The Sprouts brand played a crucial role, accounting for more than 23% of total sales.
Financial highlights included a net income of $79.6 million, up from $50 million in the fourth quarter of 2023. Gross profit margins improved from 36.5% to 38.1%, indicating better cost management.
Looking ahead, Sprouts forecasts strong growth for the first quarter of 2025, with an anticipated increase of 10% to 11% in comparable store sales and an EPS between $1.51 and $1.55. For the full year, the company expects net sales to rise by 10.5% to 12.5%, with continued strong EBITDA projections ranging from $590 million to $610 million.
