SFM reported Q2 earnings of $1.37 per share, surpassing estimates of $1.34, as net sales rose 5% to $2.3 billion.
Sprouts Farmers Market (NASDAQ: SFM) shares surged over 16% this week after reporting fiscal second-quarter earnings of $1.37 per share, exceeding Wall Street estimates of $1.34. Net sales grew 5% year over year to $2.3 billion, driven by seven new store openings, though comparable sales declined 1% due to tough prior-year comparisons.
The company’s gross margin dipped slightly to 38.7%, impacted by higher fuel costs. Operating and free cash flow reached $369 million and $179 million, respectively, in the first half of 2026. Analysts had anticipated weaker performance amid competitive pressures.
Management expects same-store sales to rebound in Q3, with full-year net sales growth projected at 5.5% to 6.5%. Earnings per share are forecast between $5.32 and $5.40, supported by 42 new store openings.