Sprouts Farmers Market (SFM) is expected to deliver "in-line" Q1 results and reaffirm 2026 forecast, with modestly improving comparable sale trends, RBC Capital Markets said in a report Tuesday.
RBC said it raised its Q1 comparable sales estimate to a 1.5% decline from a prior 2% drop, now slightly ahead of consensus expectations, citing improved "transaction data" since mid-February. Adjusted earnings per share are projected to remain at $1.69, roughly in line with Wall Street estimates, as continued investments in pricing and loyalty programs weigh on margins, the firm said.
Sprouts Farmers Market is scheduled to release its Q1 financial results on April 29.
The brokerage said it expects the company's management to reaffirm its 2026 guidance following the release, noting that quarter-to-date trends have remained "steady" and should support "confidence" in maintaining 2-year stack for Q2 assumptions. Comparable sales for Q2 are forecast in a range of down 2% to flat, broadly aligning with consensus, according to the report.
RBC said "primary focus" is expected to be on April comparable sales performance as a key indicator of whether comps can begin to "accelerate" after cycling through tougher year-ago comparisons.
RBC has an outperform rating on Sprouts Farmers Market, with an unchanged price target of $114.
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