On this page of StockholderLetter.com we present the latest annual shareholder letter from Sprouts Farmers Market, Inc. — ticker symbol SFM. Reading current and past SFM letters to shareholders can bring important insights into the investment thesis.

 •  4/8/2025 Letter Continued (Full PDF)
 •  4/10/2023 SFM Stockholder Letter
 •  4/5/2024 SFM Stockholder Letter
 •  More "Grocery & Drug Stores" Category Stockholder Letters
 •  SFM Benford's Law Stock Score = 73

SFM Shareholder/Stockholder Letter Transcript:

2024
ANNUAL REPORT

TO
TOOUR
OURSHAREHOLDERS,
SHAREHOLDERS,
updateyou
youon
ona aremarkable
remarkable2024
2024for
forSprouts
SproutsFarmers
FarmersMarket.
Market.We
Wecelebrated
celebrated
I Iam
amdelighted
delightedtotoupdate
an
anincredible
incredibleyear
yearofofexciting
excitingachievements
achievementsacross
acrossthe
thecompany,
company,fueled
fueledbybythe
thefocus,
focus,energy,
energy,and
and
passion
passionofofour
our35,000
35,000team
teammembers
membersthroughout
throughoutthe
thecountry.
country.From
Fromour
ourstores
storestotoour
ourdistribution
distribution
centers
centerstotoour
oursupport
supportoffice,
office,our
ourteam
teamcollaborated
collaboratedeffectively
effectivelytotoexecute
executeour
ourinitiatives
initiativesatata ahigh
high
level,
level,providing
providingour
ourcustomers
customerswith
withour
ourunique
uniqueassortment
assortmentofofattribute-driven
attribute-drivenhealthy
healthyproducts
productsand
and
an
anoutstanding
outstandingshopping
shoppingexperience.
experience.
Sprouts
Sproutsisiswell-positioned
well-positionedtotomeet
meetthe
theneeds
needsofofour
ourtarget
targetcustomers,
customers,who
whoare
areincreasingly
increasinglyfocused
focusedon
on
health
healthand
andwellness
wellnessand
andthe
theessential
essentialrole
rolethat
thathealthy
healthyfood
foodplays
playsinintheir
theirlives.
lives.Our
Ourcurated
curatedselection
selection
innovative,differentiated
differentiatedhealthy
healthyproducts
productstruly
trulyresonates
resonateswith
withthem.
them.InIn2024,
2024,over
over70%
70%ofofour
our
ofofinnovative,
salescame
camefrom
fromattribute-driven
attribute-drivenproducts
products       organic,
organic,gluten-free,
gluten-free,fair
fairtrade,
trade,keto,
keto,humanely
humanelyraised,
raised,
sales
regeneratively
regenerativelygrown,
grown,and
andvegan
vegan       totoname
namea afew.
few.We   ll
We   llcontinue
continuetotocombine
combineour
ourhealthy
healthyproduct
product
offerings
offeringswith
withour
ourservice-oriented
service-orientedculture,
culture,supporting
supportingour
ourcustomers
customersasasa atrusted
trustedpartner
partneron
ontheir
their
healthjourney.
journey.
health
I Iam
amdelighted
delightedthat
thatSprouts
Sproutsachieved
achievedthe
thebest
bestcustomer
customerservice
servicescores
scoresininour
ourcompany   s
company   shistory
historyinin
2024,
2024,and
andwe   ll
we   llcontinue
continuetotoengage
engagewith
withour
ourcustomers
customersthrough
throughmessaging
messagingand
andpersonalization.
personalization.We
We
launched
launcheda apilot
pilotofofour
ourloyalty
loyaltyprogram
programduring
duringthe
theyear,
year,and
andI   m
I   mexcited
excitedabout
aboutthe
theopportunities
opportunitiesthis
this
presents
presentstotoconnect
connectwith
withour
ourcustomers
customersand
andtailor
tailorexperiences
experiencesthat
thatserve
servetheir
theirspecific
specificneeds
needseven
even
more
moreeffectively.
effectively.
Finally,
Finally,inin2024,
2024,we
wewanted
wantedtotoput
putinto
intosimple
simplewords
wordsour
ourcompany
companypurpose,
purpose,which
whichhas
hasalways
alwaysbeen
been
part
partofofour
ourDNA:
DNA:we
wehelp
helppeople
peoplelive
liveand
andeat
eatbetter.
better.Our
Ourpurpose
purposedrives
driveseverything
everythingwe
wedo
doand
andwill
will
guide
guideususininserving
servingour
ourcustomers,
customers,team
teammembers,
members,and
andcommunities
communitiesininthe
theyears
yearsahead
aheadasaswe
westrive
strive
totomake
makethe
theworld
worlda alittle
littlebit
bitbetter,
better,product
productbybyproduct
productand
andstore
storebybystore.
store.
Thank
Thankyou
youfor
foryour
yourcontinued
continuedsupport
supportand
andownership
ownershipofofSprouts.
Sprouts.
Jack
JackSinclair,
Sinclair,
Chief
ChiefExecutive
ExecutiveOfficer
Officer
TTSS
22002244HHIGIGHHLLIGIGHH
       Achieved
Achievedannual
annualsales
salesofof$7.7
$7.7billion,
billion,a a
13%
13%increase
increasefrom
from2023,
2023,bolstered
bolsteredbyby7.6%
7.6%
comparable
comparablestore
storesales
salesgrowth
growth
       Opened
Opened3333new
newstores
storesfrom
fromsea
seatotoshining
shiningsea,
sea,
resulting
resultinginin440
440stores
storesinin2424states
statesasasofof2024
2024
year-end
year-end
       Created
Createdapproximately
approximately3,300
3,300new
newjobs
jobs
through
throughour
ournew
newstore
storeopenings
openingsand
andpromoted
promoted
over
over18%
18%ofofour
ourteam
teammembers
members
       Elevated
Elevatede-commerce
e-commercesales
salestotoover
over$1$1billion,
billion,
representing
representing14%
14%ofofsales
salesand
andour
ourability
abilitytoto
seamlessly
seamlesslyintegrate
integrateour
ourdigital
digitaland
andin-store
in-store
experience
experience
ourSprouts
SproutsBrand
Brandtoto23%
23%ofofour
ourtotal
total
       Grew
Grewour
sales,
sales,demonstrating
demonstratingthe
thepopularity
popularityofofthese
these
differentiated
differentiatedproducts
products
       Donated
Donatedthe
theequivalent
equivalentofofover
over2929million
million
meals
mealstotothose
thoseininneed
needthrough
throughour
ourFood
Food
Rescue
Rescueprogram
program
       Returned
Returned$238
$238million
milliontotoshareholders
shareholders
through
throughour
ourongoing
ongoingshare
sharebuyback
buybackprogram,
program,
contributing
contributingtotoour
ourdiluted
dilutedearnings
earningsper
pershare
share
ofof$3.75,
$3.75,ananincrease
increaseofof32%
32%from
from2023
2023



 4/8/2025 Letter Continued (Full PDF)