Sprouts Farmers Market reported first-quarter net sales growth of 4% to $2.3 billion, driven largely by new store openings, but comparable-store sales fell 1.7%, CEO Jack Sinclair told investors Wednesday. The results underscored the company's struggle to rebuild shopper perception after a weak 2025 close.
To address an affordability challenge that has hampered the grocer's competitive position, Sprouts has begun making "selective price adjustments" to its most relevant items, CFO Curtis Valentine said. The initial reductions focused on a small number of SKUs, including coffee and other essential goods. The company is also streamlining its promotional strategy to be more targeted and drive greater value perception.
Sprouts' chainwide loyalty program, launched in October, is continuing to scale and draw positive customer feedback, Sinclair said. Meanwhile, e-commerce grew 10% in Q1 and represented around 16% of total sales. The grocer opened six new stores in Q1 and remains on track to open at least 40 locations by year-end, with nearly 150 new locations approved and more than 105 executive leases signed. A Northern California meat distribution center is planned to open in Q2.
For full-year 2026, Sprouts expects comparable-store sales to fall between -1% and 1%, though the company projects year-over-year comparisons will improve in the second half of the year.