Sprouts leaning into foraging and innovation

PHOENIX — Sprouts Farmers Market Inc. is leaning into foraging and innovation as it seeks to drive sales growth, said Jack Sinclair, chief executive officer.

In comments delivered to analysts as part of the company’s first-quarter conference call on April 29, Sinclair said Sprouts already has introduced 1,500 new items in its stores in 2026. Most recently, the company launched Proda protein soda and PuraSoda.

“Innovation remains our strength, and we continue to attract a strong and healthy pipeline of emerging health and wellness brands that view Sprouts as the preferred launch partner,” Sinclair said. “Sprouts’ brand continues to grow, expanding our differentiation across both fresh and non-perishable categories. Several of these innovations are resonating with customers, most notably our regenerative organic certified coffee, seed-oil-free hummus, and beef tallow kettle chips. As we innovate, we remain focused on maintaining the right balance of everyday wellness essentials to curated premium wellness items, ensuring relevance, value, and quality for our customers.”

In addition to innovation, Sprouts is taking a “targeted approach” to price and promotion, Sinclair said.

“In the first quarter, we took initial price reductions on a small number of SKUs, such as coffee and a handful of other essential items,” he said. “As well, we continue to test additional pricing opportunities. We’re reshaping our promotional plans to be more streamlined and targeted on driving greater value on the categories and items that matter most to our customers.”

Nicholas Konat, president and chief operating officer, added that Sprouts’ strategy on pricing is twofold: to put more items in the basket and to get core customers to come back more often.

New product introductions helped drive a 4.1% increase in net sales in the first quarter ended March 29, to $2.33 billion, up from $2.24 billion in the same period a year ago.

Net income, though, was lower in the period, falling to $163.72 million, equal to $1.73 per share on the common stock, down 9% from $180.03 million, or $1.83 per share, in the same period a year ago.