Overview

* Sprouts Q2 net sales rise 17% yr/yr, beating analyst expectations, per LSEG data

* Diluted EPS for Q2 increases to $1.35 from $0.94 last year

* Co in Q2 repurchased 0.5 mln shares for $73 mln

Outlook

* Sprouts expects Q3 diluted EPS of $1.12 to $1.16

* Company forecasts full-year net sales growth of 14.5% to 16%

* Sprouts anticipates full-year EBIT of $675 mln to $690 mln

* Company plans to open at least 35 new stores in 2025

Result Drivers

* INVESTMENTS - Co attributes strong Q2 performance to investments in operations, self-distribution, and customer personalization

* STORE OPENINGS - Opening of 12 new stores contributed to 10.2% growth in comparable store sales

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $2.22 $2.17

bln bln (12

Analysts

)

Q2 EPS $1.35

Q2 Net $133.70

Income mln

Q2 10.2%

Comparab

le Sales

Growth

Q2 Gross $862.60

Profit mln

Q2 $179.36

Operatin mln

g Income

Q2 $179.79

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 11 "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 $180.00, about 12.8% above its July 29 closing price of $156.94

* The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 32 three months ago

Press Release:

(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.)