Overview

* Sprouts Q3 net sales grow 13% yr/yr to $2.2 bln, missing analyst expectations

* Diluted EPS for Q3 rises to $1.22 from $0.91 last year

* Company announces new $1 bln share repurchase program

Outlook

* Company sees Q4 comparable store sales growth of 0.0% to 2.0%

* Sprouts forecasts Q4 diluted EPS between $0.86 and $0.90

* Company expects full-year net sales growth of approximately 14%

* Sprouts anticipates full-year EBIT of $675 mln to $680 mln

* Company plans to open 37 new stores in 2025

Result Drivers

* STORE OPENINGS - Sprouts opened 9 new stores, contributing to overall sales growth

* CUSTOMER ENGAGEMENT - Strategy continues to resonate with target customers, driving strong performance

* COMPARABLE SALES GROWTH - Comparable store sales increased by 5.9%, indicating strong performance

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $2.20 $2.22

bln bln (13

Analysts

)

Q3 EPS $1.22

Q3 Net $120.11

Income mln

Q3 5.90%

Comparab

le Sales

Growth

Q3 Gross $851.05

Profit mln

Q3 $157.39

Operatin mln

g Income

Q3 $158.08

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the food retail & distribution peer group is "buy"

* Wall Street's median 12-month price target for Sprouts Farmers Market Inc ( SFM ) is $167.50, about 36.2% above its October 28 closing price of $106.80

* The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 30 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)