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Sprouts Farmers Market’s 265-Store Pipeline: Can Expansion Outrun Weak Comps?

Sprouts Farmers Market reported second quarter 2026 results that aligned with company expectations amid a challenging consumer environment characterized by cautious spending on healthy groceries and tough year-over-year comparisons. Total sales increased 5% to $2.3 billion, driven mainly by the strong performance of new stores, while comparable store sales declined by 1%. Sequential improvement in comparable store sales was noted through May, although June saw a dip due to a difficult prior-year produce comparison and a surge in demand linked to supply chain issues last year. E-commerce sales grew by over 12%, now representing about 16% of total sales, and Sprouts brand products accounted for 26% of sales. Gross margin slightly declined by 12 basis points to 38.7%, impacted by loyalty program investments and elevated fuel costs, partially offset by efficiencies from self-distribution and vendor support.