Earnings release
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Exhibit 99.1 Investor Contact: Media Contact: Susannah Livingston media@sprouts.com (602) 682-1584 susannahlivingston@sprouts.com Sprouts Farmers Market, Inc. Reports Third Quarter 2026 Results PHOENIX, Ariz. – (Business Wire) – October 28, 2026 – Sprouts Farmers Market, Inc. (Nasdaq: SFM) today reported results for the 13-week third quarter ended September 27, 2026. “While a challenging consumer environment and the cyclospora disruption affected the quarter, we recognize the need to improve our performance and are taking action to strengthen execution and drive traffic,” said Jack Sinclair, chief executive officer of Sprouts Farmers Market. “We are increasing investments to enhance affordability and deepen customer engagement, while building on the differentiated assortment and experience that define Sprouts. I want to thank our teams for their dedication, including opening a record 15 new stores during the quarter. The strong performance of our recent store vintages and continued momentum in unit growth reinforce our confidence in the significant opportunity ahead for Sprouts.” Third Quarter Highlights: • Net sales totaled $2.3 billion, a 5% increase from the same period in 2025 • Comparable store sales of (0.9)% • Diluted earnings per share of $1.21, compared to diluted earnings per share of $1.22 in the same period in 2025 • Opened 15 new stores, resulting in 504 stores in 25 states as of September 27, 2026 Leverage and Liquidity in Third Quarter 2026 • Ended the quarter with $229 million in cash and cash equivalents and zero balance on our $600 million revolving credit facility • Repurchased 1.1 million shares of common stock for a total investment of $89 million, excluding excise tax • Generated cash from operations of $555 million and invested $275 million in capital expenditures, net of landlord reimbursement, year-to-date through September 27, 2026 Fourth Quarter and Full-Year 2026 Outlook The following provides information on our fourth quarter 2026 outlook (on a 13-week basis): • Comparable store sales: (2.0)% to (4.0)% • Diluted earnings per share: $0.47 to $0.51 The Company notes that fiscal year 2026 will be a 53-week year, with the extra week falling in the fourth quarter. We estimate the impact from the 53rd week to be approximately $190 million in sales, $20 million in income before interest and taxes, and $0.16 in diluted earnings per share. The following provides information on our full year 2026 outlook (on a 52-week basis): • Net sales growth: ~4.3%
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• Comparable store sales: ~(1.7)% • EBIT: ~$605 million • Diluted earnings per share: ~$4.80 • Unit growth: 42 net new stores • Capital expenditures (net of landlord reimbursements): ~$310 million Third Quarter 2026 Conference Call Sprouts will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, October 28, 2026, during which Sprouts executives will further discuss third quarter 2026 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 October 28, 2026. 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," "will," "believes," or "projects," 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 in a timely manner; product supply disruptions; equipment supply disruptions; general economic conditions that impact consumer spending or result in competitive responses; accounting standard changes; 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 Sprouts Farmers Market is one of the largest and fastest growing specialty retailers of fresh, natural and organic food in the United States. Sprouts helps people live and eat better with fresh produce at the heart of the store and delicious discoveries for every dietary lifestyle. Always foraging for what’s fresh and innovative, Sprouts offers a carefully curated assortment of products that inspire wellness naturally, including organic, gluten-free, plant-based and non-GMO favorites. Headquartered in Phoenix, AZ, Sprouts employs approximately 36,000 team members and operates more than 500 stores in 25 states nationwide. To learn more about Sprouts and the role it plays in its communities, visit sprouts.com/about/.
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SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Thirteen weeks ended Thirty-nine weeks ended September 27, 2026 September 28, 2025 September 27, 2026 September 28, 2025 Net sales $ 2,304,720 $ 2,200,430 $ 6,959,703 $ 6,657,468 Cost of sales 1,423,926 1,349,379 4,260,985 4,057,454 Gross profit 880,794 851,051 2,698,718 2,600,014 Selling, general and administrative expenses 683,262 653,329 2,024,676 1,921,682 Depreciation and amortization (exclusive of depreciation included in cost of sales) 44,916 38,862 130,024 110,567 Store closure and other costs/(credits), net (169) 1,462 1,752 4,679 Income from operations 152,785 157,398 542,266 563,086 Interest expense/(income), net 1,419 (690) 1,358 (2,045) Income before income taxes 151,366 158,088 540,908 565,131 Income tax provision 37,945 37,972 134,568 131,286 Net income $ 113,421 $ 120,116 $ 406,340 $ 433,845 Net income per share: Basic $ 1.22 $ 1.23 $ 4.32 $ 4.43 Diluted $ 1.21 $ 1.22 $ 4.30 $ 4.38 Weighted average shares outstanding: Basic 93,128 97,672 93,976 98,023 Diluted 93,666 98,715 94,556 99,086
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SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) September 27, 2026 December 28, 2025 ASSETS Current assets: Cash and cash equivalents $ 228,664 $ 257,282 Accounts receivable, net 31,539 65,221 Inventories 440,434 427,095 Prepaid expenses and other current assets 35,229 60,306 Total current assets 735,866 809,904 Property and equipment, net of accumulated depreciation 1,246,011 1,085,356 Operating lease assets, net 1,863,438 1,652,732 Intangible assets 208,215 208,215 Goodwill 381,750 381,750 Other assets 23,781 20,692 Total assets $ 4,459,061 $ 4,158,649 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 224,740 $ 291,033 Accrued liabilities 272,845 304,419 Accrued salaries and benefits 65,501 96,017 Current portion of operating lease liabilities 192,553 177,263 Current portion of finance lease and other finance obligations 3,509 2,071 Total current liabilities 759,148 870,803 Long-term operating lease liabilities 1,909,922 1,682,425 Long-term debt and other finance obligations 129,577 81,585 Other long-term liabilities 44,656 40,283 Deferred income tax liability 86,430 80,479 Total liabilities 2,929,733 2,755,575 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, 92,673,774 shares issued and outstanding, September 27, 2026; 95,926,024 shares issued and outstanding, December 28, 2025 93 96 Additional paid-in capital 863,652 841,848 Retained earnings 665,583 561,130 Total stockholders’ equity 1,529,328 1,403,074 Total liabilities and stockholders’ equity $ 4,459,061 $ 4,158,649
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SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (IN THOUSANDS) Thirty-nine weeks ended September 27, 2026 September 28, 2025 Operating activities Net income $ 406,340 $ 433,845 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 137,671 116,003 Operating lease asset amortization 121,171 107,866 Share-based compensation 19,465 22,045 Deferred income taxes 5,951 (488) Other non-cash items 3,819 1,643 Changes in operating assets and liabilities: Accounts receivable 8,495 24,688 Inventories (13,339) (56,608) Prepaid expenses and other current assets 25,836 5,310 Other assets (3,647) (3,928) Accounts payable 4,819 23,231 Accrued liabilities (34,660) 23,496 Accrued salaries and benefits (30,516) (8,397) Accrued income tax — 11,522 Operating lease liabilities (102,885) (123,680) Other long-term liabilities 6,607 923 Cash flows provided by operating activities 555,127 577,471 Investing activities Purchases of property and equipment (284,210) (176,081) Cash flows used in investing activities (284,210) (176,081) Financing activities Payments on finance lease liabilities (598) (793) Repurchase of common stock (299,221) (341,925) Payments of excise tax on repurchases of common stock (4,172) (2,091) Proceeds from exercise of stock options 2,339 1,686 Other financing activities 1,100 — Cash flows used in financing activities (300,552) (343,123) (Decrease)/increase in cash, cash equivalents, and restricted cash (29,635) 58,267 Cash, cash equivalents, and restricted cash at beginning of the period 260,894 267,213 Cash, cash equivalents, and restricted cash at the end of the period $ 231,259 $ 325,480
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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 EBITDA and EBIT. 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 (income) expense, net, provision for income tax, and depreciation, amortization and accretion. The company defines EBIT as net income before interest (income) expense, net and provision for income tax. 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 EBIT and EBITDA to net income for the thirteen and thirty-nine weeks ended September 27, 2026 and September 28, 2025:
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SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES NON-GAAP MEASURE RECONCILIATION (UNAUDITED) (IN THOUSANDS) Thirteen weeks ended Thirty-nine weeks ended September 27, 2026September 28, 2025September 27, 2026September 28, 2025 Net income $ 113,421 $ 120,116 $ 406,340 $ 433,845 Income tax provision 37,945 37,972 134,568 131,286 Interest (income)/expense, net 1,419 (690) 1,358 (2,045) Earnings before interest and taxes (EBIT) 152,785 157,398 542,266 563,086 Depreciation, amortization and accretion 47,720 40,739 137,671 116,003 EBITDA $ 200,505 $ 198,137 $ 679,937 $ 679,089 ### Source: Sprouts Farmers Market, Inc. Phoenix, AZ 10/28/26