Sprouts Farmers Market Inc. (SFM): Thoughts ahead of 2Q results

Research evidence excerpt

Sprouts Farmers Market Inc. (SFM): Thoughts ahead of 2Q results

Equity Research

8 July 2026 | 2:08AM CDT

SFM is scheduled to report 2Q results on July 29th. We expect a relatively in-line Leah Jordan, CFA

+1(713)658-2691 | leah.jordan@gs.com

print (EPS estimate of $1.35 vs FactSet consensus of $1.34), while the 3Q comp guide Goldman Sachs & Co. LLC

and visibility into the anticipated sequential comp improvement will be key for the Eli Thompson

stock, along with updated commentary on its affordability efforts and the +1(713)904-8289eli.thompson@gs.com|

competitive environment overall as we continue to hear about incremental price Goldman Sachs & Co. LLC

Dan Duggan, Ph.D.investments across the industry. While recent trends across our trackers have been +1(212)902-4726 |

mixed, we continue to see a path for a top line reacceleration in 2H (back to algo by dan.duggan@gs.comGoldman Sachs & Co. LLC

4Q), supported by its differentiated market position across the natural and organic

grocery landscape, secular shifts toward health/wellness, and potential tailwinds

from its new loyalty program, along with easier compares. We also note a strong

balance sheet with ample capacity for buybacks. Additionally, we see an attractive

risk-reward set-up on our 12-month view with its valuation at 14.6x NTM P/E (vs its 5

and 10-year average of 18x, plus unit growth peers are currently tracking at 17x on

average).

2Q trends

n Observed sales for SFM decelerated in 2Q (vs 1Q) along with traffic, while ticket

was relatively stable (Exhibit 1), noting an impact from fewer new store openings

y/y in 2Q (vs higher in 1Q). Regarding monthly SSS, the laps are fairly similar with

April and May slightly above +DD, while June tracked slightly below +DD. Looking