Key Points

  • Sprouts Farmers Market reported a 5% increase in net sales for the second quarter of 2026, with comparable store sales down 1%, CEO Jack Sinclair told investors on Wednesday that results were "in line with our expectations."
  • New store openings drove net sales growth, but this was partially offset by a decline in comparable store sales, said CFO Curtis Valentine.
  • Sprouts also completed the rollout of its meat distribution facilities in the second quarter, with a new facility in Northern California now operational, revealed President and COO Nick Konat. According to Sinclair, approximately 85% of Sprouts' store fresh meat sales now flow through the company's own distribution centers.

Deeper Analysis

Although Sprouts saw modest improvements in both traffic and basket size, it recognizes that consumers still face an uneven macroeconomic environment. Therefore, Sinclair stated that the company will continue to focus on "what we can control," including enhancing its value proposition, strengthening local sourcing, improving the in-store experience, advancing supply chain capabilities, and maintaining a robust new store pipeline.

The membership program is one of the key avenues for Sprouts to gain deeper consumer insights. With the program live across all channels for less than a year, Sprouts continues to strengthen it, Sinclair said, adding that building first-party data capabilities remains a priority in its long-term value strategy.

"The membership program and personalization remain key drivers for the long-term growth of the business," Sinclair said. "As consumer behavior evolves in this uneven macro environment, we continue to see progress. Our acceleration strategies have identified new sales drivers that should benefit us in the second half of the year, and the data we are accumulating is being applied more broadly across the business to gain deeper insights into consumer behavior and preferences."

Sinclair added that Sprouts plans to use this data to improve communication with customers by sending more targeted media content and customizing messages to drive product discovery.

E-commerce continues to perform strongly, with digital sales up over 12% in the second quarter, representing approximately 16% of total quarterly sales, Valentine said.

The private label business also continues to contribute to growth, with the Sprouts brand again outperforming the overall business and accounting for 26% of total sales, Valentine noted.

Sprouts' in-house distribution push is currently focused on fresh produce and meat, with the next step being to bring select Sprouts brand items into the company's own distribution centers, Konat said. He added that this will give the specialty grocer greater control over key items for its customers.

Sinclair said Sprouts plans to open 42 new stores in 2026, slightly above its initial guidance of at least 40 new stores.