Sprouts Farmers Market shares rally after lifted full-year profit outlook

11 articles · Updated · The Globe and Mail · May 1

The grocer reported first-quarter net sales of $2.3 billion, opened six stores to reach 483 in 25 states, and generated $137 million in free cash flow.
Sprouts now expects 2026 net sales growth of 4.5% to 6.5%, operating income of $675 million to $695 million, and earnings per share of $5.32 to $5.48.
Comparable sales fell 1.7% as the retailer cut prices for cost-conscious shoppers, but management still plans at least 40 openings this year and sees capacity for more than 1,000 stores.

With same-store sales falling, is Sprouts' plan to double its locations a bold growth strategy or a high-risk gamble?

As Sprouts invades new territories, how will rivals like Trader Joe's and Whole Foods fight back to protect their market share?