SFM's Q3 profit tops estimates on margin gains and e-commerce growth, but moderating comparable sales temper the outlook.
Sprouts Farmers Market, Inc. ( SFM ) Q3 2025 Earnings Call October 29, 2025 5:00 PM EDT Company Participants Susannah Livingston - Vice President of Investor Relations & Treasury Jack Sinclair - CEO & Director Curtis Valentine - Chief Financial Officer Nicholas Konat - President & COO Conference Call Participants Michael Montani - Evercore ISI Institutional Equities, Research Division Seth Sigman - Barclays Bank PLC, Research Division Leah Jordan - Goldman Sachs Group, Inc., Research Division Mark Carden - UBS Investment Bank, Research Division Edward Kelly - Wells Fargo Securities, LLC, Research Division Thomas Palmer - JPMorgan Chase & Co, Research Division Rupesh Parikh - Oppenheimer & Co. Inc., Research Division John Heinbockel - Guggenheim Securities, LLC, Research Division Robert Ohmes - BofA Securities, Research Division Scott Mushkin - R5 Capital LLC Scott Marks - Jefferies LLC, Research Division Benjamin Wood - BMO Capital Markets Equity Research Kelly Bania - BMO Capital Markets Equity Research Charles Cerankosky - Northcoast Research Partners, LLC Presentation Operator Ladies and gentlemen, thank you for standing by. Welcome to Sprout's Third Quarter 2025 Earnings Conference Call.
While the top- and bottom-line numbers for Sprouts Farmers (SFM) give a sense of how the business performed in the quarter ended September 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Sprouts Farmers (SFM) came out with quarterly earnings of $1.22 per share, beating the Zacks Consensus Estimate of $1.17 per share. This compares to earnings of $0.91 per share a year ago.
A company's comeback story can mean a significant opportunity for investors to win returns in the financial world. Of course, when a stock has shed a sizable portion of its value in recent memory, many investors prefer to exercise caution unless there is a clear signal that the firm's fortunes could turn around.
Ahead of its Q3 release, SFM balances digital and private-label gains against moderating comps and cost normalization.
Sprouts Farmers (SFM) closed the most recent trading day at $108.1, moving 1.76% from the previous trading session.
Sprouts Farmers Market is upgraded to a buy, benefiting from targeting affluent, growing suburban communities and offering value in the upmarket grocery segment. SFM's fundamentals are strong, with robust revenue growth, high net income margins, and free cash flow growth outpacing peers like Walmart and Kroger. The company's focus on wealthier clientele shields it from broader economic risks impacting lower-income consumers, supporting its growth outlook.
In the closing of the recent trading day, Sprouts Farmers (SFM) stood at $114.12, denoting a +2.69% move from the preceding trading day.
SFM's 10.2% comparable store sales surge and upbeat outlook boost confidence in its FY25 performance trajectory.
Having hit record highs at the start of the summer, Sprouts Farmers Market Inc NASDAQ: SFM has spent much of the past few months sliding lower. It's a tough pill for investors who believed the good times would last forever, but for those of us on the sidelines, there are actually some reasons to get excited.
Hometown farming is gaining consumer trust for providing fresh, healthy food options. Local food stands offer fixed prices, making fresh produce more accessible to budget-conscious shoppers. The trend reflects a shift toward community-based agriculture and away from mass-market food sources.