Sprouts Farmers Market, Inc.SFM

Sprouts Farmers Market, Inc. Segments Disclosure

10-KFiled Feb 19, 20262 min read
Segments
The Company has one operating segment, and therefore, one reportable segment: healthy grocery stores. The Company derives all its revenues from the sale of products at its various store locations across the United States. The accounting policies of the segment are the same as described in the summary of significant accounting policies. The Company’s chief operating decision maker (“CODM”) is the chief executive officer. The CODM assesses performance and allocates resources based on consolidated net income. The measure of segment assets is reported on the balance sheet as total consolidated assets.

In accordance with ASC 280, the following table represents the significant expense and key metrics reviewed by the CODM:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Net Sales$8,806,159 $7,719,290 $6,837,384 
Less:
Cost of sales5,389,770 4,777,799 4,315,543 
Direct store expenses2,210,092 1,958,392 1,723,726 
Other segment items (1)
520,139 478,602 447,884 
Interest (income) expense, net(2,626)(2,201)6,491 
Income tax provision165,114 126,097 84,884 
Net income$523,670 $380,601 $258,856 

(1) Other segment items include non-store selling, general, and administrative expenses, depreciation and amortization, store closure costs, and other overhead expenses.

The Company categorizes the varieties of products it sells as perishable and non-perishable. Perishable product categories include produce, meat and meat alternatives, seafood, deli, bakery, floral and dairy and dairy alternatives. Non-perishable product categories include grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care.
In accordance with ASC 606, the following table represents a disaggregation of revenue for 2025, 2024 and 2023:
Year Ended
December 28, 2025December 29, 2024December 31, 2023
Perishables$5,020,140 57.0 %$4,424,762 57.3 %$3,915,971 57.3 %
Non-Perishables3,786,019 43.0 %3,294,528 42.7 %2,921,413 42.7 %
Net sales$8,806,159 100.0 %$7,719,290 100.0 %$6,837,384 100.0 %

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 20, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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