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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 20, 2025
Sprouts Farmers Market, Inc.
(Exact name of registrant as specified in its charter)
Delaware001-3602932-0331600
(State or other jurisdiction
of incorporation or organization)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
5455 E. High Street, Suite 111
Phoenix, Arizona 85054
(Address of principal executive offices and zip code)
(480) 814-8016
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol(s)
Name of Each Exchange on Which Registered
Common Stock, $0.001 par valueSFM
Nasdaq Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Item 2.02. Results of Operations and Financial Condition.
On February 20, 2025, Sprouts Farmers Market, Inc. (the “Company”) issued a press release announcing its results of operations for its fourth fiscal quarter and fiscal year ended December 29, 2024. On the same date, the Company posted on its investor relations website, located at investors.sprouts.com, a PowerPoint presentation (the “Earnings Presentation”) that will be used by management during the Company’s earnings conference call. A copy of the press release and the Earnings Presentation are furnished herewith as Exhibits 99.1 and 99.2, respectively, and are incorporated into this Item 2.02 by reference.
The information furnished in this Item 2.02, including Exhibits 99.1 and 99.2 attached hereto and incorporated herein, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 7.01. Regulation FD Disclosure.
The information set forth under Item 2.02 is hereby incorporated by reference.
The Company is also furnishing in this Current Report on Form 8-K a PowerPoint presentation (the “Investor Presentation”) to be used by the Company at various meetings with institutional investors or analysts. The Investor Presentation may be amended or updated at any time and from time to time through another Current Report on Form 8-K, a later company filing or other means. A copy of the Investor Presentation is furnished herewith as Exhibit 99.3 and is incorporated into this Item 7.01 by reference.
The information furnished in this Item 7.01, including Exhibits 99.1, 99.2 and 99.3, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
The Company does not have, and expressly disclaims, any obligation to release publicly any updates or any changes in our expectations or any change in events, conditions, or circumstances on which any forward-looking statement in the attached press release, Earnings Presentation or Investor Presentation is based.
The text of this Current Report on Form 8-K and the attached press release, Earnings Presentation and Investor Presentation are available on the Company’s investor relations website located at investors.sprouts.com, although the Company reserves the right to discontinue that availability at any time.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SPROUTS FARMERS MARKET, INC.
Date: February 20, 2025
By:/s/ Brandon F. Lombardi
Name:Brandon F. Lombardi
Title:Chief Legal Officer and Corporate Secretary


Exhibit 99.1
img407723_0a.jpg
Investor Contact: Media Contact:
Susannah Livingston media@sprouts.com
(602) 682-1584
susannahlivingston@sprouts.com
Sprouts Farmers Market, Inc. Reports Fourth Quarter and Full Year 2024 Results
PHOENIX, Ariz. – (Business Wire) – February 20, 2025 – Sprouts Farmers Market, Inc. (Nasdaq: SFM) today reported results for the 13-week fourth quarter and 52-week year ending December 29, 2024.
“2024 was a remarkable year for our company," said Jack Sinclair, chief executive officer of Sprouts Farmers Market. “Our teams across the business delivered on our strategy and set us up for even greater success in the future. Our unique, attribute-driven offering resonates more than ever with our target customers. They trust Sprouts as a partner on their healthy living journey, and it shows in our results. I’m grateful to our team members for their hard work, and we are excited for 2025 and the years ahead.”
Fourth Quarter Highlights:
•Net sales totaled $2.0 billion; a 18% increase from the same period in 2023
•Comparable store sales growth of 11.5%
•Diluted earnings per share of $0.79; compared to diluted earnings per share of $0.49 in the same period in 2023
•Opened 12 new stores
Full Year Highlights:
•Net sales totaled $7.7 billion; a 13% increase from the same period in 2023
•Comparable store sales growth of 7.6%
•Diluted earnings per share of $3.75; compared to diluted earnings per share of $2.50 and Adjusted diluted earnings per share of $2.84(1) in the same period in 2023
•Opened 33 new stores, resulting in 440 stores in 24 states as of December 29, 2024
(1)Adjusted diluted earnings per share, a non-GAAP financial measure, excludes the impact of certain special items. For the fifty-two weeks ended December 29, 2024, there were no adjustments due to special items. See the “Non-GAAP Financial Measures” section of this release for additional information about this item.
Leverage and Liquidity in 2024
•Ended the quarter with $265 million in cash and cash equivalents and zero balance on its $700 million revolving credit facility after a $125 million voluntary pay down
•Authorized a new $600 million share buyback program and repurchased 2.7 million shares of common stock for a total investment of $238 million, excluding excise tax
•Generated cash from operations of $645 million and invested $200 million in capital expenditures, net of landlord reimbursement



First Quarter and Full-Year 2025 Outlook
The following provides information on our first quarter 2025 outlook:
•Comparable store sales growth: 10% to 11%
•Adjusted diluted earnings per share: $1.51 to $1.55
The following provides information on our full-year 2025 outlook:
•Net sales growth: 10.5% to 12.5%
•Comparable store sales growth: 4.5% to 6.5%
•Adjusted EBIT: $590 million to $610 million
•Adjusted diluted earnings per share: $4.52 to $4.68
•Unit growth: At least 35 new stores
•Capital expenditures (net of landlord reimbursements): $230 million to $250 million
Fourth Quarter and Full Year 2024 Conference Call
Sprouts will hold a conference call at 5:00 p.m. Eastern Time on Thursday, February 20, 2025, during which Sprouts executives will further discuss fourth quarter and full year 2024 financial results.
A webcast of the conference call will be available through Sprouts’ investor relations webpage, accessible via the following link. Participants should register on the website approximately ten minutes prior to the start of the webcast.
A webcast replay will be available at approximately 8:00 p.m. Eastern Time on February 20, 2025. This can be accessed with the following link.
Important Information Regarding Outlook
There is no guarantee that Sprouts will achieve its projected financial expectations, which are based on management estimates, currently available information and assumptions that management believes to be reasonable. These expectations are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management. See “Forward-Looking Statements” below.
Forward-Looking Statements
Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact (including, but not limited to, statements to the effect that Sprouts Farmers Market or its management "anticipates," "plans," "estimates," "expects," or "believes," or the negative of these terms and other similar expressions) should be considered forward-looking statements, including, without limitation, statements regarding the company’s outlook, growth, opportunities and long-term strategy. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this release. These risks and uncertainties include, without limitation, the company’s ability to execute on its long-term strategy; the company’s ability to successfully compete in its competitive industry; the company’s ability to successfully open new stores; the company’s ability to manage its growth; the company’s ability to maintain or improve its operating margins; the company’s ability to identify and react to trends in consumer preferences; product supply disruptions; equipment supply disruptions; general economic conditions that impact consumer spending or result in competitive responses; accounting standard changes; the current inflationary environment and future potential inflationary and/or deflationary trends; tariffs; and other factors as set forth from time to time in the company’s Securities and Exchange Commission filings, including, without limitation, the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The company intends these forward-looking statements to speak only as of the time of this release and does not undertake to update or revise them as more information becomes available, except as required by law.


Corporate Profile
True to its farm-stand heritage, Sprouts offers a unique grocery experience featuring an open layout with fresh produce at the heart of the store. Sprouts inspires wellness naturally with a carefully curated assortment of better-for-you products paired with purpose-driven people. The healthy grocer continues to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. Headquartered in Phoenix, and one of the largest and fastest growing specialty retailers of fresh, natural and organic food in the United States, Sprouts employs approximately 35,000 team members and operates more than 440 stores in 24 states nationwide. To learn more about Sprouts, and the good it brings communities, visit sprouts.com/about.


SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Thirteen Weeks endedFifty-Two Weeks ended
December 29, 2024December 31, 2023December 29, 2024December 31, 2023
Net sales$1,996,228 $1,698,545 $7,719,290 $6,837,384 
Cost of sales1,236,338 1,078,172 4,777,799 4,315,543 
Gross profit759,890 620,373 2,941,491 2,521,841 
Selling, general and administrative expenses614,880 513,476 2,291,350 2,000,437 
Depreciation and amortization (exclusive of depreciation included in cost of sales)34,619 32,059 132,748 131,893 
Store closure and other costs, net3,928 5,400 12,896 39,280 
Income from operations106,463 69,438 504,497 350,231 
Interest (income) expense, net(1,819)433 (2,201)6,491 
Income before income taxes108,282 69,005 506,698 343,740 
Income tax provision28,680 18,956 126,097 84,884 
Net income$79,602 $50,049 $380,601 $258,856 
Net income per share:
Basic$0.80 $0.49 $3.79 $2.53 
Diluted$0.79 $0.49 $3.75 $2.50 
Weighted average shares outstanding:
Basic99,820101,383100,363102,479
Diluted101,020102,207101,379103,390


SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
December 29, 2024December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents$265,159 $201,794 
Accounts receivable, net30,901 30,313 
Inventories343,329 323,198 
Prepaid expenses and other current assets36,131 48,467 
Total current assets675,520 603,772 
Property and equipment, net of accumulated depreciation895,189 798,707 
Operating lease assets, net1,466,903 1,322,854 
Intangible assets208,094 208,060 
Goodwill381,750 381,741 
Other assets13,243 12,294 
Total assets$3,640,699 $3,327,428 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$213,414 $179,927 
Accrued liabilities216,842 164,887 
Accrued salaries and benefits97,991 74,752 
Current portion of operating lease liabilities150,400 126,271 
Current portion of finance lease liabilities1,321 1,032 
Total current liabilities679,968 546,869 
Long-term operating lease liabilities1,520,272 1,399,676 
Long-term debt and finance lease liabilities7,248 133,685 
Other long-term liabilities38,259 36,270 
Deferred income tax liability73,059 62,381 
Total liabilities2,318,806 2,178,881 
Commitments and contingencies
Stockholders’ equity:
Undesignated preferred stock; $0.001 par value; 10,000,000 shares authorized, no shares issued and outstanding— — 
Common stock, $0.001 par value; 200,000,000 shares authorized, 99,255,036 shares issued and outstanding, December 29, 2024; 101,211,984 shares issued and outstanding, December 31, 202399 101 
Additional paid-in capital808,140 774,834 
Retained earnings513,654 373,612 
Total stockholders’ equity1,321,893 1,148,547 
Total liabilities and stockholders’ equity$3,640,699 $3,327,428 


SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
Fifty-Two Weeks ended
December 29, 2024December 31, 2023
Operating activities
Net income$380,601 $258,856 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense140,164 137,811 
Operating lease asset amortization133,923 127,208 
Impairment of assets406 30,549 
Share-based compensation28,417 18,898 
Deferred income taxes10,691 (4,915)
Other non-cash items5,610 1,086 
Changes in operating assets and liabilities, net of effects from acquisition:
Accounts receivable30,007 3,173 
Inventories(20,131)(10,857)
Prepaid expenses and other current assets11,903 2,210 
Other assets(45)3,482 
Accounts payable27,986 12,215 
Accrued liabilities39,305 11,746 
Accrued salaries and benefits23,240 12,880 
Operating lease liabilities(168,538)(138,795)
Other long-term liabilities1,675 (479)
Cash flows from operating activities645,214 465,068 
Investing activities
Purchases of property and equipment(230,375)(225,310)
Payments for acquisition, net of cash acquired— (13,032)
Cash flows used in investing activities(230,375)(238,342)
Financing activities
Payments on revolving credit facilities(125,000)(125,000)
Payments on finance lease liabilities(1,148)(1,006)
Repurchase of common stock(228,472)(203,496)
Payments of excise tax on repurchases of common stock(1,766)— 
Proceeds from exercise of stock options4,890 11,454 
Cash flows used in financing activities(351,496)(318,048)
Increase/(Decrease) in cash, cash equivalents, and restricted cash63,343 (91,322)
Cash, cash equivalents, and restricted cash at beginning of the period203,870 295,192 
Cash, cash equivalents, and restricted cash at the end of the period$267,213 $203,870 


Non-GAAP Financial Measures
In addition to reporting financial results in accordance with accounting principles generally accepted in the United States (“GAAP”), the company presents Adjusted gross margin, Adjusted EBITDA, Adjusted EBIT, and Adjusted diluted earnings per share. These measures are not in accordance with, and are not intended as alternatives to, GAAP. The company's management believes that this presentation provides useful information to management, analysts and investors regarding certain additional financial and business trends relating to its results of operations and financial condition. In addition, management uses these measures for reviewing the financial results of the company, and certain of these measures may be used as components of incentive compensation.
The company defines EBITDA as net income before interest expense, provision for income tax, and depreciation, amortization and accretion. Adjusted gross margin, Adjusted EBITDA, Adjusted EBIT and Adjusted diluted earnings per share exclude the impact of certain specified special items. The Company reported these adjusted measures to provide additional information with respect to the impact of store closure costs and certain other items during the thirteen and fifty-two weeks ended December 31, 2023. There were no such material adjustments during the thirteen and fifty-two weeks ended December 29, 2024.
Non-GAAP measures are intended to provide additional information only and do not have any standard meanings prescribed by GAAP. Use of these terms may differ from similar measures reported by other companies. Because of their limitations, non-GAAP measures should not be considered as a measure of discretionary cash available to use to reinvest in the growth of the company’s business, or as a measure of cash that will be available to meet the company’s obligations. Each non-GAAP measure has its limitations as an analytical tool, and they should not be considered in isolation or as a substitute for analysis of the company’s results as reported under GAAP.
The following table shows a reconciliation of (i) Adjusted gross margin to gross margin, (ii) Adjusted EBITDA and Adjusted EBIT to net income and (iii) Adjusted diluted earnings per share to diluted earnings per share, in each case, for the thirteen and fifty-two weeks ended December 29, 2024 and December 31, 2023:



SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES
NON-GAAP MEASURE RECONCILIATION
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Thirteen Weeks endedFifty-Two Weeks ended
December 29, 2024December 31, 2023December 29, 2024December 31, 2023
Gross profit$759,890 $620,373 $2,941,491 $2,521,841 
Special items (1)
— — — 2,955 
Adjusted gross profit$759,890 $620,373 $2,941,491 $2,524,796 
Gross margin38.1 %36.5 %38.1 %36.9 %
Adjusted gross margin38.1 %36.5 %38.1 %36.9 %
Net income$79,602 $50,049 $380,601 $258,856 
Income tax provision28,680 18,956 126,097 84,884 
Interest (income) expense, net(1,819)433 (2,201)6,491 
Earnings before interest and taxes (EBIT)106,463 69,438 504,497 350,231 
Special items (2)
— — — 46,034 
Adjusted EBIT106,463 69,438 504,497 396,265 
Depreciation, amortization and accretion, adjusted for special items36,283 34,144 140,164 131,933 
Adjusted EBITDA$142,746 $103,582 $644,661 $528,198 
Net income$79,602 $50,049 $380,601 $258,856 
Special items, net of tax (2)
— — — 34,272 
Adjusted net income$79,602 $50,049 $380,601 $293,128 
Diluted earnings per share$0.79 $0.49 $3.75 $2.50 
Adjusted diluted earnings per share$0.79 $0.49 $3.75 $2.84 
Diluted weighted average shares outstanding101,020102,207101,379103,390
(1)For the fifty-two weeks ended December 29, 2024, there were no special items. For the fifty-two weeks ended December 31, 2023, special items included approximately $3 million in Cost of sales related to store closures and our supply chain transition.
(2)For the fifty-two weeks ended December 29, 2024, there were no special items. For the fifty-two weeks ended December 31, 2023, special items included approximately $28 million in Store Closure and other costs, net primarily related to impairment charges and $6 million in Depreciation and amortization (exclusive of depreciation in cost of sales) for accelerated depreciation in connection with store closures, $9 million in Selling, general and administrative expenses related to store closures, our supply chain transition and acquisition related costs, and $3 million in Cost of sales related to store closures and our supply chain transition. After-tax impact included the tax benefit on the pre-tax charge.
###
Source: Sprouts Farmers Market, Inc
Phoenix, AZ
2/20/25

Q4 & Full-Year 2024 Earnings February 2025 Exhibit 99.2

 
2 Forward-Looking Statements Certain statements in this presentation are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact (including, but not limited to, statements to the effect that Sprouts Farmers Market, Inc. (the “Company”) or its management "anticipates," "plans," "estimates," "expects," or "believes," or the negative of these terms and other similar expressions) should be considered forward-looking statements, including, without limitation, statements regarding the Company’s outlook, growth, opportunities and long-term strategy. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this presentation. These risks and uncertainties include, without limitation, the Company’s ability to execute on its long-term strategy; the Company’s ability to successfully compete in its competitive industry; the Company’s ability to successfully open new stores; the Company’s ability to manage its growth; the Company’s ability to maintain or improve its operating margins; the Company’s ability to identify and react to trends in consumer preferences; product supply disruptions; equipment supply disruptions; general economic conditions that impact consumer spending or result in competitive responses; accounting standard changes; the current inflationary environment and future potential inflationary and/or deflationary trends; tariffs; and other factors as set forth from time to time in the Company’s Securities and Exchange Commission filings, including, without limitation, the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company intends these forward-looking statements to speak only as of the time of this presentation and does not undertake to update or revise them as more information becomes available, except as required by law. Non-GAAP Financial Measures We refer to adjusted gross profit, adjusted gross margin, EBIT, adjusted EBIT, adjusted EBIT Margin, and adjusted diluted earnings per share, each of which is a Non-GAAP Financial Measure. These measures are not prepared in accordance with, and are not intended as alternatives to, generally accepted accounting principles in the United States, or GAAP. The Company's management believes that such measures provide useful information to management, analysts and investors regarding certain additional financial and business trends relating to its results of operations and financial condition. In addition, management uses these measures for reviewing the Company’s financial results, and certain of these measures may be used as components of incentive compensation. The Company defines adjusted gross profit as gross profit, excluding the impact of special items. Adjusted gross margin reflects adjusted gross profit divided by net sales for the applicable period. EBIT is defined as net income before interest expense and provision for income tax, and adjusted EBIT as EBIT, excluding the impact of special items. Adjusted EBIT Margin reflects adjusted EBIT, divided by net sales for the applicable period. The Company defines adjusted diluted earnings per share as diluted earnings per share excluding the impact of special items. Non-GAAP measures are intended to provide additional information only and do not have any standard meanings prescribed by GAAP. Use of these terms may differ from similar measures reported by other companies. Because of their limitations, non-GAAP measures should not be considered as a measure of discretionary cash available to use to reinvest in the growth of the Company’s business, or as a measure of cash that will be available to meet the Company’s obligations. Each non-GAAP measure has its limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. To the extent forward looking non-GAAP financial measures are provided herein, they are not reconciled to comparable forward-looking GAAP measures due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation.

 
Sprouts 2024 Accomplishments 3 • Opened 33 new stores, creating ~3,300 new jobs and expanded our footprint to our 24th state - Wyoming • Sprouts Brand grew to 23% of sales in 2024 and added ~300 new items • Accelerating comp and traffic • Cross functional teamwork led to top-notch execution of merchandise events, store openings, customer engagement and improved operations • E-commerce sales grew to over $1B and added UberEats to expand access • Culture work led to team member retention reaching all-time highs • Diluted EPS up 32%(1) (1) See the Appendix to this presentation for a reconciliation of diluted EPS to Adjusted diluted EPS. Reflects comparison of 2024 diluted EPS to 2023 adjusted diluted EPS

 
Fourth Quarter 2024 Highlights Net Sales +18% Comps(1) +11.5% New Store Openings 12 Diluted EPS $0.79 EPS Growth(2) +61% Share Repurchases(3) $108M (1) Comparable Store Sales (2) Reflects comparison of Q4 24 diluted EPS to Q4 23 adjusted diluted EPS (3) Excluding excise tax 4

 
Fourth Quarter Sales Drivers • Comp performance broad-based and balance across channels, geography, baskets and traffic • Strong performance across all categories - with attribute-driven products leading the way • Foraging Team driving innovative and trending products, in both branded and Sprouts Brand • Meeting the needs of customers during key holiday moments

 
Full-Year 2024 Highlights Net Sales +13% Comps(1) +7.6% New Store Openings 33 Diluted EPS $3.75 EPS Growth(2) +32% Cash Generation $645M From Operations Share Repurchases(3) $238M (1) Comparable Store Sales (2) Reflects comparison of 2024 diluted EPS to 2023 adjusted diluted EPS (3) Excluding excise tax 6

 
7 Structurally Improved Margin Profile (1) 2023 gross margin is on an adjusted basis. See the Appendix to this presentation for a reconciliation of gross margin to adjusted gross margin. (2) See the Appendix to this presentation for a reconciliation of EBIT and EBIT margin to adjusted EBIT and adjusted EBIT margin for 2019 & 2023. There were no material adjustments to 2022 & 2024 EBIT; thus, only EBIT and EBIT margin are presented for those periods. EBIT & EBIT MARGIN % (2) 33.6% 36.7% 36.9% 38.1% 2019 2022 2023 2024 $218 $358 $396 $504 3.9% 5.6% 5.8% 6.5% 2019 2022 2023 2024 ($ in mm) GROSS MARGIN % (1)

 
8 Strong Balance Sheet, Robust Cash Flows Self Fund our Growth and Deliver Shareholder Value through Ongoing Share Repurchase Program ($ in mm) (1) Capital expenditures are net of landlord reimbursement (2) Excluding excise tax $81 $112 $213 $200 $188 $200 $203 $238 $365 $371 $465 $645 Cap Ex Share Repurchase Operating Cash Flow 2021 2022 2023 2024 (1) (2)

 
9 Full-Year 2025 Outlook Expect to open at least 35 new stores Capex (net of landlord reimbursement) $230 million to $250 million First Quarter 2025: Comp sales growth of 10% to 11% and Adjusted diluted EPS $1.51 to $1.55 Total sales growth of 10.5% to 12.5% Comp sales growth of 4.5% to 6.5% Adjusted earnings before interest & taxes (EBIT) $590 million to $610 million Adjusted diluted earnings per share (EPS) $4.52 to $4.68

 
10 Appendix

 
11 SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES NON-GAAP MEASURE RECONCILIATION (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Appendix Fifty-Two Weeks ended Fifty-Two Weeks ended Fifty-Two Weeks ended Fifty-Two Weeks ended Dec 29, 2024 Dec 31, 2023 Jan 1, 2023 Dec 29, 2019 Net sales $ 7,719,290 $ 6,837,384 $ 6,404,223 $ 5,634,835 Gross profit $ 2,941,491 $ 2,521,841 $ 2,348,564 $ 1,894,818 Special items — 2,955 (1) — — Adjusted gross profit 2,941,491 2,524,796 2,348,564 1,894,818 Gross margin 38.1 % 36.9 % 36.7 % 33.6 % Adjusted gross margin 38.1 % 36.9 % 36.7 % 33.6 % Net income $ 380,601 $ 258,856 $ 261,164 $ 149,629 Income tax provision 126,097 84,884 88,149 46,539 Interest (income) expense, net (2,201) 6,491 9,047 21,192 Earnings before interest and taxes (EBIT) 504,497 350,231 358,360 217,360 Special items — 46,034 (2) — 508 (3) Adjusted EBIT $ 504,497 $ 396,265 $ 358,360 $ 217,868 EBIT margin 6.5 % 5.1 % 5.6 % 3.9 % Adjusted EBIT margin 6.5 % 5.8 % 5.6 % 3.9 % Net Income $ 380,601 $ 258,856 $ 261,164 $ 149,629 Special items, net of tax — 34,272 (2) — 377 (3) Adjusted Net income $ 380,601 $ 293,128 $ 261,164 $ 150,006 Diluted EPS $ 3.75 $ 2.50 $ 2.39 $ 1.25 Adjusted diluted EPS $ 3.75 $ 2.84 $ 2.39 $ 1.25 Diluted weighted average shares outstanding 101,379 103,390 109,139 119,742 The following table shows a reconciliation of adjusted gross margin to gross margin, EBIT and adjusted EBIT to net income, adjusted EBIT margin to EBIT margin, as well as a reconciliation of adjusted net income and adjusted diluted earnings per share to net income and diluted earnings per share for the fiscal years ended December 29, 2024, December 31, 2023, January 1, 2023 and December 29, 2019 (1) Includes approximately $3 million in Cost of sales related to store closures and our supply chain transition. (2) Includes approximately $28 million in store closure and other costs, net primarily related to impairment charges and $6 million in Depreciation and amortization (exclusive of depreciation in cost of sales) for accelerated depreciation in connection with store closures, $9 million in selling, general and administrative expenses related to stores closures, our supply chain transition and acquisition-related costs, and $3 million in Cost of sales related to store closures and our supply chain transition. After-tax impact includes the tax benefit on the pre-tax charge. (3) Includes direct costs associated with store closures or relocations. After-tax impact includes the tax benefit on the pre-tax charge. .

 
INVESTOR DECK February 2025 Exhibit 99.3

 
2 Forward-Looking Statements Certain statements in this presentation are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact (including, but not limited to, statements to the effect that Sprouts Farmers Market, Inc. (the “Company”) or its management "anticipates," "plans," "estimates," "expects," or "believes," or the negative of these terms and other similar expressions) should be considered forward-looking statements, including, without limitation, statements regarding the Company’s outlook, growth, opportunities and long-term strategy. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this presentation. These risks and uncertainties include, without limitation, the Company’s ability to execute on its long-term strategy; the Company’s ability to successfully compete in its competitive industry; the Company’s ability to successfully open new stores; the Company’s ability to manage its growth; the Company’s ability to maintain or improve its operating margins; the Company’s ability to identify and react to trends in consumer preferences; product supply disruptions; equipment supply disruptions; general economic conditions that impact consumer spending or result in competitive responses; accounting standard changes; the current inflationary environment and future potential inflationary and/or deflationary trends; tariffs; and other factors as set forth from time to time in the Company’s Securities and Exchange Commission filings, including, without limitation, the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company intends these forward-looking statements to speak only as of the time of this presentation and does not undertake to update or revise them as more information becomes available, except as required by law. Non-GAAP Financial Measures We refer to adjusted gross profit, adjusted gross margin, EBIT, adjusted EBIT, adjusted EBIT Margin, and adjusted diluted earnings per share, each of which is a Non-GAAP Financial Measure. These measures are not prepared in accordance with, and are not intended as alternatives to, generally accepted accounting principles in the United States, or GAAP. The Company's management believes that such measures provide useful information to management, analysts and investors regarding certain additional financial and business trends relating to its results of operations and financial condition. In addition, management uses these measures for reviewing the Company’s financial results, and certain of these measures may be used as components of incentive compensation. The Company defines adjusted gross profit as gross profit, excluding the impact of special items. Adjusted gross margin reflects adjusted gross profit divided by net sales for the applicable period. EBIT is defined as net income before interest expense and provision for income tax, and adjusted EBIT as EBIT, excluding the impact of special items. Adjusted EBIT Margin reflects adjusted EBIT, divided by net sales for the applicable period. The Company defines adjusted diluted earnings per share as diluted earnings per share excluding the impact of special items. Non-GAAP measures are intended to provide additional information only and do not have any standard meanings prescribed by GAAP. Use of these terms may differ from similar measures reported by other companies. Because of their limitations, non-GAAP measures should not be considered as a measure of discretionary cash available to use to reinvest in the growth of the Company’s business, or as a measure of cash that will be available to meet the Company’s obligations. Each non-GAAP measure has its limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. To the extent forward looking non-GAAP financial measures are provided herein, they are not reconciled to comparable forward-looking GAAP measures due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Unless otherwise indicated, information included in this presentation is as of our 2024 fiscal year ended December 29, 2024.

 
3 HELPING PEOPLE LIVE AND EAT BETTER

 
4 WHAT DEFINES SPROUTS And what makes us different • Differentiated assortment of innovative, healthy and lifestyle-friendly products • Purposeful curation of responsibly and locally sourced products • Sprouts Brand: high-quality, attribute- specific private label • Farmers market experience open layout with fresh produce at the heart of the store, community feel, treasure hunt for unique products • Increasing access to high-quality, better- for-you products • Fresh supply chain: integrated fresh produce distribution channel • Team: friendly & welcoming, helpful, knowledgeable • Culture: care, own it, love being different! • Purpose: help people live and eat better

 
5 WHY INVEST IN SPROUTS? A Differentiated, Robust Growth Business • Incredible growth opportunity, with plenty of whitespace: approximately 10% annual unit growth(1) • Strong box economics • Strong financial returns: low double-digit earnings growth and expansion of ROIC • Healthy balance sheet & robust cash flows, with shareholder-friendly capital allocation • Innovative & differentiated products with lifestyle-friendly ingredients not widely found • Store experience & assortment curated for our target customer needs • Leadership team: deeply experienced in retail and consumer space • Sustainability: deep commitment to taking care of our team, community and the planet (1) Expect to open at least 35 new stores in 2025 (2) See the Appendix to this presentation for a reconciliation of EPS to adjusted EPS $1.25 $2.39 $2.84 $3.75 Adjusted Diluted EPS 2019 2022 2023 2024 (2)

 
6 SPROUTS’ LONG-TERM STRATEGY O U R P U R P O S E HELP PEOPLE LIVE AND EAT BETTER INVEST IN TECHNOLOGY FOR GROWTH INSPIRE AND ENGAGE OUR TALENT TO MAKE SPROUTS A BEST PLACE TO WORK DELIVER ON KEY FINANCIAL METRICS EARNINGS GROWTH STORE EXPANSION SALES GROWTH O U R S T R A T E G Y WIN WITH TARGET CUSTOMERS • Win health attributes, quality & fresh • Innovation leader via Sprouts Brand & Foraging • Service-driven store experience • Build omni-channel experience CUSTOMER ENGAGEMENT & PERSONALIZATION • Deepen understanding of target customers • Create value via personalization & loyalty • Grow awareness & acquisition MARKET EXPANSION • Add new stores, markets • More efficient, small box format to de-risk our growth • Accelerate new store performance CREATE AN ADVANTAGED SUPPLY CHAIN • Own and improve fresh distribution • Network expansion & efficiency • Increase local offering EXPANDING ROIC

 
7 SPROUTS’ FOCUS ON INNOVATION & DIFFERENTIATION Attracts our Target Customer >20% Vegan >30% non-GMO >45% organic ~20% gluten- free >10% non-GMO ~20% organic >15% non-GMO >50% of Beef sales are grass- fed ~25% organic >20% Kosher >55% gluten-free >35% organic ~30% vegan >60% Non-GMO >50% organic >25% plant- based >45% gluten-free >40% Non-GMO >20% vegan ~25% organic >70% gluten- free >50% Non-GMO >40% vegan

 
8 PRODUCE: THE HEART OF THE STORE • Hybrid produce buying model: centralized and regional teams allow us to be flexible and react to the produce markets quickly • Meaningful farmer partnerships: delivers new varietals and favorable pricing to our customers through spot buys • Increasingly locally sourced fresher produce, through new distribution channels • Organic focused program - 46% of total produce sales are organic • Produce priced below most in the marketplace

 
9 SPROUTS’ STORES ARE FILLED WITH A CURATION OF DIFFERENTIATED BETTER-FOR-YOU PRODUCTS More than 70% of Products Sold in Sprouts are Attribute Driven: Organic, Paleo, Keto, Plant Based, Non-GMO, Gluten Free, Vegan, Dairy-free, Grass Fed, Raw (Includes all produce)

 
10 SPROUTS BRAND: DIFFERENTIATED, HIGH QUALITY, ATTRIBUTE-SPECIFIC Sprouts Brand Sales Penetration(1) (1) Sprouts Brand Sales Penetration represents sales of Sprouts Brand products, as a percentage of total company sales. 16% 19% 20% 23% 2021 2022 2023 2024

 
11 SPROUTS CUSTOMER: Higher Income Consumer who Craves Health & Wellness, High Quality, Lifestyle-friendly Products, & Differentiated Assortment Sprouts’ assortment of unique and attribute-based products continues to be a key driver of customer trips $121K Avg. HHI 49% $100K + 46 Avg. Age 69% College/ Grad 57% Married/ Relationship 2.4 Avg. People in Household Demographics Over Index on Lifestyle Choices 32% committed to buying organic 30% committed to dietary lifestyle (vegan, gluten-free, pesca, etc.) 69% are concerned about the environment 41% review nutrition labels 28% are looking for fair trade / socially responsible 27% are looking to try new things 41% research recipes online 28% listen to podcasts Gen Z & Millennial opportunity Less susceptible to economic downturns Slightly higher educated Serving each family member’s need Typically dual income

 
12 CUSTOMER ENGAGEMENT: OMNICHANNEL OFFERING We let the customer choose how to shop IN-STORE: ONLINE: Ecommerce Penetration (2) Majority of ecommerce customers are omnichannel with higher share of wallet (1) Sprouts NPS study, August 2024 (2) Sprouts Ecommerce Penetration represents ecommerce sales as a percentage of total company sales. • CSAT Scores are best in company history • NPS scores at +61, with only 5% detractors(1) • Increasing sampling programs • Greeting all customers • Recommendations to increase basket 10.8% 11.3% 12.2% 14.2% 2021 2022 2023 2024

 
13 CUSTOMER ENGAGEMENT: Opportunity for Loyalty & more Engagement • 24% of transactions linked to a Sprouts account in Q4 2024, representing 34% of our sales • 37% Ecommerce sales growth in Q4 2024 • Identifiable customers come more often and spend more 2024 2025 Started Loyalty Testing Q1 - Pilot More Stores Q2 - New Branding, New Functionality Q3 - Start Rollout Q4 - Scale to Chain Planned Loyalty Program Journey:

 
14 SMALLER BOX WITH HIGHER RETURNS New store size decreasing from approximately 30K to 23K square feet • Updated Format stays true to our Fresh- focused Farmers Market Heritage • Prioritize Categories for Growth Potential • Continue to Offer all Categories • More Productive Store, cost-effective (lower cost to build, and reduced operating cost)

 
15 HIGH GROWTH RETAILER with Plenty of White-Space Potential for 300+ New Stores in Expansion Markets (1) 2020, 2021, 2022, 2023 & 2024 actual unit growth, 2025 outlook, & approximately 10% unit growth thereafter Expansion Markets Existing DCs Future DCs Existing Markets Unit growth (1) 362 374 386 407 440 2020 2021 2022 2023 2024 2025 2026 2027

 
16 ADVANTAGED FRESH SUPPLY CHAIN Distribution Centers (DCs) within 250 Miles of the Majority of Stores Optimizing our Supply Chain: Creating DC capacity to support future growth: • Capacity allows for additional fresh self-distribution • Exploring DC expansions and North East locations Improved Freshness for the Customer: • Reduced average inventory in stores and DCs by 7% and turned product 8% faster Local: • Partnering with 170 local farmers representing more than19% of total produce sales Benefits of Closer DCs: Efficiency • Maintained ~80% of stores within 250 miles of DC • Reduced total miles driven per store delivery by 7% • Launched the Southern California Consolidation Center to merge inbound produce loads to Sprouts DCs Service - achieved 99% controllable on time delivery to stores Sustainability - launched RPCs (reusable plastic containers) for wet produce SKUs to reduce waste

 
17 IMPACTFUL PRODUCTS 180+ Fair Trade products$3.3B in sales of products with a social or environmental attribute 27% of total sales from organic products 22% increase in less carbon intensive plant-based product sales HEALTH & WELLNESS RESPONSIBLE SOURCING SPROUTS BRAND & INNOVATION 19% of total sales from healthy fruits and vegetables $2.3B in sales from products with a health or nutrition attribute $1.3B in sales of Sprouts Brand products 740 new and differentiated items launched through our in-store innovation center $225M in local produce sales from a network of 170 farmers Wholesum Family Farms, the first Fair Trade Certified farm in the United States, provides Sprouts with tomatoes and other vegetables that are sustainably grown and support impactful community projects. 100% cage-free or better eggs, with 67% from free- range or pasture-raised farms 100% responsibly sourced seafood Source: Sprouts Farmers Market 2023 Impact Report

 
18 THRIVING PLANET At the core of our identity is a genuine commitment to environmental sustainability. We are taking steps to reduce our carbon footprint and our natural resource intake while providing our customers with local, organic, and other sustainable food choices. We are diverting food from landfills and providing it to those in need. ZERO WASTE & CIRCULARITY CARBON EMISSIONS FOOD WASTE RECOVERY 70% l fill diversion r te 130M single-use plastic bags av ided through commitment to remove single-use grocery bags 1.4M pounds of soft-plastic bags and film recycled 70M pounds of food recovered through donation, animal feed, and composting programs 8.2M meat trays transitioned from polystyrene to recyclable PET 25% per square foot carbon emissions intensity reduction target in our operations by 2033 10 locations transitioned to lower-GWP refrigerants <10% of our total emissions are from Scope 1 & 2 sources Our Rescued Organics program reduces food waste and supports local farmers by bringing to market imperfect organic produce that would otherwise be discarded due to imperfections that do not affect quality.Source: Sprouts Farmers Market 2023 Impact Report

 
19 PURPOSEFUL PEOPLE 5,700 safety inspections completed 61,000 safety training hours completed 36% reduction in worker injuries since 2019 LOVE BEING DIFFERENT $21M in bonuses paid to field team members $21M in savings for team members with store discount PAY & BENEFITS 3,000 new jobs created 17,000 leadership training hours delivered SAFE WORK ENVIRONMENT GROWING A WINNING TEAM 64% of store manager positions filled by internal candidates 75% of promotions were from female and/or racially/ ethnically diverse team members 33 participants of McKinsey’s Connected Leaders Academy, a program designed to make progress on inclusion and equity and improve diverse bench strength $19.68/hr average pay rate for store team members 21% of team members promoted in 2023 Source: Sprouts Farmers Market 2023 Impact Report

 
20 HEALTHY COMMUNITIES $20M awarded to local nonprofit partners in communities Sprouts operates since 2015 3M kids participated in Sprouts Healthy Communities Foundation nutrition education programs FOOD SECURITY SPROUTS HEALTHY COMMUNITIES FOUNDATION 5,500 service hours donated by Sprouts team members Students incorporate nutrition curriculum into outdoor garden supported by Sprouts Healthy Communities Foundation 65 volunteer events completed across Sprouts communities 37M pounds of food donated 478,000 Grab & Give bags pre-filled with pantry staples or body care essentials donated by our customers to those in need 29M meals donated 47% of total food donations was fresh and healthy produce Source: Sprouts Farmers Market 2023 Impact Report

 
21 RESPONSIBLE BUSINESS BOARD COMPOSITION & INDEPENDENCE DATA PRIVACY & CYBERSECURITY Board and committee oversight of ESG matters ETHICAL BUSINESS ESG LEADERSHIP & OVERSIGHT 88% of board members are independent 38% of board members are female or racially/ ethnically diverse Risk Committee oversees our risk management program, including risks related to cybersecurity and ESG actions Respecting privacy and safeguarding the personal information of our customers and team members is crucial to our success. During 2023, no cybersecurity incidents had, either individually or in the aggregate, a material adverse effect on our business, financial condition, or results of operations. Our Code of Conduct and Ethics guides our Board and team members in the ethical and responsible operation of our business. Annual outreach to largest shareholders to discuss ESG matters Our Commitment to Human Rights sets forth our commitment to respect internationally recognized human rights and aspirations to align with United Nations Principles on Business and Human Rights (UNGPs). Our Board of Directors outside our Philadelphia store on Broad Street. Source: Sprouts Farmers Market 2023 Impact Report

 
22 LONG-TERM STRATEGIC FINANCIAL TARGETS(1) Low Double-Digit Earnings Growth and Expansion of ROIC Cost to Build Reduced & Attractive New Store Economics ~10% unit growth(2) Low single digit comps Stable EBIT Margins off a Higher Base (1) These are targets and not projections; they are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and are based on assumptions with respect to future decisions, which may be subject to change. Actual results may vary and the variances may be material. Nothing in this presentation should be regarded as a representation that these targets will be achieved and the Company undertakes no duty to update its targets. See “Forward-Looking Statements.” (2) Expect to open at least 35 new stores in 2025

 
23 LOW-SINGLE-DIGIT COMPS TARGETS, WITH STABLE EBIT MARGINS(1) (1) These are targets and not projections; they are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and are based on assumptions with respect to future decisions, which may be subject to change. Actual results may vary and the variances may be material. Nothing in this presentation should be regarded as a representation that these targets will be achieved and the Company undertakes no duty to update its targets. See “Forward-Looking Statements.” See the Appendix to this presentation for a reconciliation of EBIT margin to the comparable GAAP figure. KEY COMP DRIVERS • Brand and marketing • Innovative, differentiated products • Omnichannel offering • Better new store ramp with smarter promotional approach • Customer Engagement - Loyalty ALL STORES • Smarter Promotions • Improved Buying • Improving Shrink • Supply Chain Optimization • Labor Productivity and Cost Management • Headwinds from Labor & Benefit Costs & Ecommerce fees NEW STORES • Reduction in Cost to Build (improved DA) • Lower Rents driven by Smaller Boxes • Less Efficient Operations during maturity ramp

 
24 NEW STORES’ STRONG PERFORMANCE: Four-Wall Box Target Economics (1) EBITDA MARGINS • Break even year 1 • Grows to a blended ~8% EBITDA Margins over the next 4 years (1) These are targets and not projections; they are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and are based on assumptions with respect to future decisions, which may be subject to change. Actual results may vary and the variances may be material. Nothing in this presentation should be regarded as a representation that these targets will be achieved and the Company undertakes no duty to update its targets. See “Forward-Looking Statements.” SALES • Box opens on average at $13M in year 1 annual sales • Grows 20% to 25% over next the next 4 years CASH INVESTMENT • $3.8M average new store build including CapEx, Inventory and Pre-opening expenses CASH ON CASH RETURN • Low to mid thirties by year 5

 
25 STRONGER FOUNDATION: Strategic Initiatives Taking Hold NET CASH PROVIDED BY OPERATIONS NET SALES ($ in mm) (1) See the Appendix to this presentation for a reconciliation of Adjusted Diluted Earnings Per Share to diluted Earnings Per Share and Adjusted EBIT margin to EBIT margin ADJUSTED DILUTED EARNINGS PER SHARE (1) $5,635 $6,404 $6,837 $7,719 2019 2022 2023 2024 $1.25 $2.39 $2.84 $3.75 2019 2022 2023 2024 ($ in mm) $355 $371 $465 $645 2019 2022 2023 2024 ADJUSTED EBIT MARGIN 3.9% 5.6% 5.8% 6.5% 2019 2022 2023 2024 (1) 24.6% CAGR

 
26 A STRUCTURALLY IMPROVED MARGIN PROFILE (1)2023 gross margin is on an adjusted basis. See the Appendix to this presentation for a reconciliation of gross margin to adjusted gross margin. (2) See the Appendix to this presentation for a reconciliation of EBIT and EBIT margin to adjusted EBIT and adjusted EBIT margin - for 2019 & 2023. There were no material adjustments to 2022 & 2024 EBIT; thus, only EBIT and EBIT margin are presented for those periods. ADJ EBIT & ADJ EBIT MARGIN (2) ($ in mm) GROSS MARGIN % (1) 33.6% 36.7% 36.9% 38.1% 2019 2022 2023 2024 $218 $358 $396 $504 3.9% 5.6% 5.8% 6.5% 2019 2022 2023 2024

 
27 IMPROVING ROIC ROIC (1) (1) ROIC is a non-GAAP measure defined as net operating profit after taxes divided by average invested capital. See the Appendix to this presentation for a reconciliation of ROIC to net income. 12.1% 12.4% 12.9% 14.8% 2021 2022 2023 2024

 
28 STRONG BALANCE SHEET, ROBUST CASH FLOWS Self Fund our Growth and Deliver Shareholder Value through Ongoing Share Repurchase Program 1. Capital expenditures are net of landlord reimbursement 2. Excluding excise tax $81 $112 $213 $200 $188 $200 $203 $238 $365 $371 $465 $645 Cap Ex Share Repurchase Operating Cash Flow 2021 2022 2023 2024 (1) (2)

 
29 WE HELP PEOPLE LIVE AND EAT BETTER Sprouts delivers a unique farmers market experience: bringing together passionate, knowledgeable team members, and the best assortment of high-quality food to help people live and eat better.

 
30 APPENDIX

 
31 EXECUTIVE MANAGEMENT TEAM with leading grocery & retail experience Jack Sinclair Chief Executive Officer since 2019 Curtis Valentine Chief Financial Officer since 2024 (joined SFM in 2015) Scott Neal Chief Merchandising Officer since 2022 (joined SFM in 2020) Dustin Hamilton Chief Stores Officer since 2023 (joined SFM in 2021) Dave McGlinchey Chief Strategy Officer since 2022 (joined SFM in 2017) Brandon Lombardi Chief Legal Officer & Chief Sustainability Officer since 2012 Kim Coffin Senior VP, Chief Forager since 2022 (joined SFM in 2012) Joe Hurley Chief Supply Chain Officer since 2023 (joined SFM in 2019) James Bahrenburg Chief Technology Officer since 2023 Timmi Zalatoris Chief Human Resources Officer since 2023 (joined SFM in 2017) Nick Konat President & Chief Operating Officer since 2022 Alisa Gmelich Senior VP, Chief Marketing Officer since 2022

 
32 SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES NON-GAAP MEASURE RECONCILIATION (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) APPENDIX The following table shows a reconciliation of adjusted gross margin to gross margin, EBIT and adjusted EBIT to net income, adjusted EBIT margin to EBIT margin, as well as a reconciliation of adjusted net income and adjusted diluted earnings per share to net income and diluted earnings per share for the fiscal ended December 29, 2024, December 31, 2023, January 1, 2023 and December 29, 2019 Fifty-Two Weeks ended Fifty-Two Weeks ended Fifty-Two Weeks ended Fifty-Two Weeks ended Dec 29, 2024 Dec 31, 2023 Jan 1, 2023 Dec 29, 2019 Net sales $ 7,719,290 $ 6,837,384 $ 6,404,223 $ 5,634,835 Gross profit $ 2,941,491 $ 2,521,841 $ 2,348,564 $ 1,894,818 Special items — 2,955 (1) — — Adjusted gross profit 2,941,491 2,524,796 2,348,564 1,894,818 Gross margin 38.1 % 36.9 % 36.7 % 33.6 % Adjusted gross margin 38.1 % 36.9 % 36.7 % 33.6 % Net income $ 380,601 $ 258,856 $ 261,164 $ 149,629 Income tax provision 126,097 84,884 88,149 46,539 Interest (income) expense, net (2,201) 6,491 9,047 21,192 Earnings before interest and taxes (EBIT) 504,497 350,231 358,360 217,360 Special items — 46,034 (2) — 508 (3) Adjusted EBIT $ 504,497 $ 396,265 $ 358,360 $ 217,868 EBIT margin 6.5 % 5.1 % 5.6 % 3.9 % Adjusted EBIT margin 6.5 % 5.8 % 5.6 % 3.9 % Net Income $ 380,601 $ 258,856 $ 261,164 $ 149,629 Special items, net of tax — 34,272 (2) — 377 (3) Adjusted Net income $ 380,601 $ 293,128 $ 261,164 $ 150,006 Diluted EPS $ 3.75 $ 2.50 $ 2.39 $ 1.25 Adjusted diluted EPS $ 3.75 $ 2.84 $ 2.39 $ 1.25 Diluted weighted average shares outstanding 101,379 103,390 109,139 119,742 (1) Includes approximately $3 million in Cost of sales related to store closures and our supply chain transition. (2) Includes approximately $28 million in store closure and other costs, net primarily related to impairment charges and $6 million in Depreciation and amortization (exclusive of depreciation in cost of sales) for accelerated depreciation in connection with store closures, $9 million in selling, general and administrative expenses related to stores closures, our supply chain transition and acquisition-related costs, and $3 million in Cost of sales related to store closures and our supply chain transition. After-tax impact includes the tax benefit on the pre-tax charge. (3) Includes direct costs associated with store closures or relocations. After-tax impact includes the tax benefit on the pre-tax charge. .

 
33 APPENDIX The following table shows a reconciliation of ROIC to net income for the Company’s 2021, 2022, 2023 and 2024 fiscal years SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES NON-GAAP MEASURE RECONCILIATION (UNAUDITED) (IN MILLIONS) 2024 2023 2022 2021 Net Income(1) $ 380.6 $ 258.9 $ 261.2 $ 224.2 Special Items, net of tax(2,3) — $ 34.3 $ — $ — Interest expense, net of tax(3) (1.7) $ 4.9 $ 6.8 $ 8.8 Net operating profit after tax (NOPAT) $ 378.9 $ 298.0 (1) $ 267.9 $ 253.0 Total rent expense, net of tax(3) 189.9 $ 175.6 $ 154.6 $ 150.0 Estimated depreciation on operating leases, net of tax(3) (105.6) $ (98.5) $ (87.8) $ (88.0) Estimated interest on operating leases, net of tax(3,4) 84.3 $ 77.1 $ 66.9 $ 62.0 NOPAT, including effect of operating leases $ 463.3 $ 375.1 $ 334.8 $ 315.0 Average working capital 184.7 $ 227.4 $ 271.6 $ 193.9 Average property and equipment 838.2 $ 749.6 $ 704.8 $ 712.5 Average other assets 603.0 $ 595.8 $ 568.6 $ 568.7 Average other liabilities (102.5) $ (97.9) $ (96.6) $ (101.3) Average invested capital $ 1,523.3 $ 1,474.9 $ 1,448.4 $ 1,373.8 Average operating leases(5) 1,603.8 $ 1,423.1 $ 1,259.4 $ 1,222.5 Average invested capital, including operating leases $ 3,127.1 $ 2,898.0 $ 2,707.8 $ 2,596.3 ROIC, including operating leases 14.8 % 12.9 % 12.4 % 12.1 % (1) Net income amounts represent total net income for the past four trailing quarters. (2) Special items related to 2023 store closure costs, supply chain transition, acquisition charges. (3) Net of tax amounts are calculated using the normalized effective tax rate for the period presented. (4) 2024, 2023, 2022 and 2021 estimated interest on operating leases is calculated by multiplying operating leases b a 7.0%, 7.2%, 7.1%, 6.7% discount rate, respectively, for each lease recorded as rent expense with direct store expense. (5) 2024, 2023, 2022 & 2021 average operating lease represents the average net present value of outstanding lease obligations over the past four trailing quarters.

 
v3.25.0.1
Cover
Feb. 20, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 20, 2025
Entity Registrant Name Sprouts Farmers Market, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-36029
Entity Tax Identification Number 32-0331600
Entity Address, Address Line One 5455 E. High Street
Entity Address, Address Line Two Suite 111
Entity Address, City or Town Phoenix
Entity Address, State or Province AZ
Entity Address, Postal Zip Code 85054
City Area Code 480
Local Phone Number 814-8016
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of Each Class Common Stock, $0.001 par value
Trading Symbol SFM
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001575515
Amendment Flag false
Sprouts Farmers Market (NASDAQ:SFM)
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