Sprouts Farmers Market reported double-digit sales growth in its latest quarter, fueled by product innovation and a growing private-label lineup, executives told analysts in late July.
For the second quarter ended June 29th, the Phoenix-based grocer posted comparable-store sales growth of 10.2% and net sales of $2.2 billion, up 17% from a year ago. The results exceeded Wall Street expectations, according to Earnings Whispers.
Executives said new products are driving bigger baskets, with transactions containing recently introduced items coming in at more than twice the size of the average. Ecommerce sales rose 27% during the quarter, accounting for 15% of total sales, while private-label products represented 24% of overall sales.
“We’re pushing very hard on our Sprouts brand,” CEO Jack Sinclair said. “Our Sprouts brand is innovative and different and based on attributes. No seed oils. Vegetarian and vegan. … Our focus on attribute-driven products is resulting in increased sales that surpass the rest of the business and outpace overall grocery industry growth.”
Sinclair highlighted protein in particular as a major growth driver. “We want to be on the leading edge of these kinds of trends,” he said.
Organic offerings also remain central to the chain’s strategy, now making up nearly one-third of total sales and more than half of produce sales. Sprouts said it plans to launch 350 new private-label products this year, many focused on health-related attributes such as no seed oils and high protein.
The company is also preparing to expand its customer engagement tools. A loyalty program is expected to roll out systemwide by year-end, with a shift toward more personalized marketing efforts in 2026.
On the expansion front, Sprouts opened 12 new stores in the second quarter, bringing its total to 455 across 24 states, and still plans to open 35 more locations before year’s end.
As the store base grows, Sinclair said Sprouts is taking greater control of its supply chain through self-distribution. “This includes expanding capacity in existing markets, such as our Northern California distribution center in early 2026, and building new capacity in our expansion markets by taking control of key product categories such as meat and seafood,” he said. “We are taking critical steps towards self-sufficiency. This approach allows us more control over the supply chain while minimizing operation and supply chain risk.”
(847) 277-9500