Sprouts Farmers Q1 Earnings Surpass Estimates, Comp Sales Up 11.7%

Core Insights - Sprouts Farmers Market, Inc. (SFM) reported strong first-quarter 2025 results, with both top and bottom lines exceeding expectations and showing year-over-year growth [1][2] Financial Performance - Quarterly earnings were $1.81 per share, surpassing the Zacks Consensus Estimate of$1.54, and reflecting a 61.6% increase from $1.12 in the same period last year [2] - Net sales reached$2,236.4 million, exceeding the Zacks Consensus Estimate of $2,195 million, and representing an 18.7$886.4 million, with gross margin expanding by 129 basis points to 39.6%, exceeding the expected 50 basis points expansion [4] - Operating income increased to $226.3 million from$148.3 million in the prior year, with operating margin expanding by 220 basis points to 10.1%, surpassing the anticipated 140 basis points expansion [5] Store Expansion - During the quarter, Sprouts Farmers opened three new stores, bringing the total to 443 stores across 24 states as of March 30, 2025, with plans to open at least 35 new stores in 2025 [6] Financial Health - The company ended the quarter with cash and cash equivalents of $285.7 million, long-term debt of approximately$6.9 million, and stockholders' equity of $1,288 million [7] - Cash generated from operations was$299.1 million, with capital expenditures of $49 million year to date through March 30, 2025 [7] Future Outlook - For the second quarter of 2025, Sprouts Farmers anticipates comparable store sales growth between 6.5$1.19 and $1.23 per share compared to 94 cents in the prior year [9] - The company expects full-year net sales growth of 12$640 million and $660 million for 2025 [10] - Full-year earnings are projected to be between$4.94 and $5.10 per share, indicating growth from$3.75 per share reported in 2024 [11]