Exhibit 99.1

SPROUTS FARMERS MARKET, INC. REPORTS FIRST QUARTER 2016 RESULTS

PHOENIX, Ariz. – (Globe Newswire) – May 5, 2016 – Sprouts Farmers Market, Inc. (Nasdaq: SFM) today reported results for the 13-week first quarter ended April 3, 2016.  

First Quarter Highlights:

“Our first quarter results reflect our customers’ continued strong engagement with the Sprouts brand, and the appeal of our fresh, natural and organic products at affordable prices,” said Amin Maredia, chief executive officer of Sprouts Farmers Market.  “Despite a near zero inflationary environment, our team delivered another solid quarter of comparable store sales growth and robust earnings improvement. We continue to further product innovation, enhance the customer experience, develop our team members and invest in infrastructure and technology, which position Sprouts for continued growth.”

In order to aid in understanding the company’s business performance, it has presented results in conformity with accounting principles generally accepted in the United States (“GAAP”) and has also presented certain non-GAAP measures which are explained and reconciled to the GAAP measures in the tables included in this release. For 2016 and 2015, the company has presented EBITDA and adjusted EBITDA, respectively. In addition, for 2015, the company has presented adjusted net income and adjusted earnings per share. In each case, an “adjusted” measure excludes the after-tax impact of disposal of assets, store closure and exit costs, and secondary offering expenses.  For the first quarter of 2016, such adjustments would be immaterial.  Accordingly, the company has presented net income, earnings per share and EBITDA for the first quarter of 2016 without adjustment and has provided comparisons of such measures to the corresponding adjusted measures from the first quarter of 2015. Where applicable, results are first presented on a GAAP basis and then on an adjusted basis.

First Quarter 2016 Financial Results

Net sales for the first quarter of 2016 were $993.2 million, a 16% increase compared to the same period in 2015.   Net sales growth was driven by a 4.8% increase in comparable store sales and solid performance in new stores opened.

Gross profit for the quarter increased 19% to $306.5 million, resulting in a gross profit margin of 30.9%, an increase of 80 basis points compared to the same period in 2015.  This increase reflects higher margins in certain categories primarily due to deflation and more normalized promotions compared to the prior year.

Direct store expense (“DSE”) as a percentage of sales for the quarter increased 50 basis points to 19.5% compared to the same period in 2015.  This was primarily due to higher payroll expense from planned wage increases and increased training costs, partially offset by timing of the New Year’s holiday payroll.

Selling, general and administrative expenses (“SG&A”) as a percentage of sales for the quarter increased 30 basis points to 3.1%, compared to the same period in 2015. This was primarily driven by higher stock compensation costs due to executive changes and higher corporate overhead as we continue to build out infrastructure to support our growth.

Net income for the quarter was $46.2 million, or diluted earnings per share of $0.30, up $8.7 million from $37.5 million, or diluted earnings per share of $0.24 for the same period in 2015.  Excluding the after-tax impact of the loss on disposal of assets, the store closure and exit costs and secondary offering expenses in the first quarter of 2015, net income for the quarter increased 20%, compared to adjusted net income of $38.6 million for the same period in 2015. Diluted earnings per share increased 20%, compared to adjusted diluted earnings per share of $0.25 for the same period in 2015.  These increases were driven by higher sales and margins, the benefit from lower interest expense due to a voluntary pay-down on our revolving credit facility and a more favorable interest rate resulting from our April 2015 refinancing, and a lower effective tax rate.

Growth and Development

During the first quarter of 2016, we opened 11 new stores: one each in Missouri, Tennessee and Texas; two each in Colorado and Georgia; and four in California.  Three additional stores have been opened in the second quarter to date, resulting in a total of 231 stores in 13 states as of May 5, 2016.

Leverage and Liquidity

We generated cash from operations of $97.9 million for the first quarter of 2016 and invested $31.9 million in capital expenditures net of landlord reimbursement, primarily for new stores. In addition, we purchased $59.3 million of common stock under our $150 million share repurchase program. We ended the quarter with a $160.0 million balance on our revolving credit facility, $1.7 million of letters of credit outstanding under the facility, and $145.7 million in cash and cash equivalents.

2016 Outlook

We have adjusted our 2016 net sales growth, primarily due to a lower inflationary environment and timing of new store openings, and confirm our other targets including comparable store sales growth and diluted earnings per share. The following provides information on our guidance for 2016:

Please see the explanation and reconciliation of EBITDA, adjusted EBITDA and adjusted earnings per share to the comparable GAAP measures for the 13 weeks ended April 3, 2016 and March 29, 2015 in the tables included below.

First Quarter 2016 Conference Call

We will hold a conference call at 7 a.m. Pacific Daylight Time (10 a.m. Eastern Daylight Time) on Thursday, May 5, 2016, during which Sprouts executives will further discuss our first quarter 2016 financial results.  

A webcast of the conference call will be available through Sprouts’ investor webpage located at investors.sprouts.com. Participants should register on the website approximately 10 minutes prior to the start of the webcast.

The conference call will be available via the following dial- in numbers:

The audio replay will remain available for 72 hours and can be accessed by dialing 855-859-2056 (toll-free) or 404-537-3406 (international) and entering the confirmation code: 88859558.

Important Information Regarding Outlook

There is no guarantee that Sprouts will achieve its projected financial expectations, which are based on management estimates, currently available information and assumptions that management believes to be reasonable.   These expectations are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management.  See “Forward-Looking Statements” below.

Forward-Looking Statements

Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact (including, but not limited to, statements to the effect that Sprouts Farmers Market or its management "anticipates," "plans," "estimates," "expects," or "believes," or the negative of these terms and other similar expressions) should be considered forward-looking statements, including, without limitation, statements regarding the company’s guidance and outlook for 2016. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this release.  These risks and uncertainties include, without limitation, risks associated with the company’s ability to successfully compete in its intensely competitive industry; the company’s ability to successfully open new stores; the company’s ability to manage its rapid growth; the company’s ability to maintain or improve its operating margins; the company’s ability to identify and react to trends in consumer preferences; product supply disruptions; general economic conditions; and other factors as set forth from time to time in the company’s Securities and Exchange Commission filings, including, without limitation, the company’s Annual Report on Form 10-K.  The company intends these forward-looking statements to speak only as of the time of this release and does not undertake to update or revise them as more information becomes available, except as required by law.

Corporate Profile

Sprouts Farmers Market, Inc. is a healthy grocery store offering fresh, natural and organic foods at great prices. Sprouts offer a complete shopping experience that includes fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, natural body care and household items catering to consumers’ growing interest in health and wellness. Headquartered in Phoenix, Arizona, Sprouts employs more than 22,000 team members and operates more than 230 stores in thirteen states from coast to coast. For more information, visit www.sprouts.com or @sproutsfm on Twitter.

SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(IN THOUSANDS)

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with GAAP, the company has presented EBITDA and for 2015, adjusted net income, adjusted earnings per share and adjusted EBITDA. These measures are not in accordance with, and are not intended as an alternative to, GAAP. The company's management believes that these presentations provide useful information to management, analysts and investors regarding certain additional financial and business trends relating to its results of operations and financial condition. In addition, management uses these measures for reviewing the financial results of the company, and they are a component of incentive compensation. The company defines EBITDA as net income before interest expense, provision for income tax, and depreciation and amortization, and defines adjusted EBITDA as EBITDA as further adjusted to exclude store closure and exit costs, gains and losses from disposal of assets, and expenses incurred by the company in its secondary public offerings and employment taxes paid by the company in connection with options exercised in those offerings (“Public Offering Expenses”) and the loss on extinguishment of debt. The company defines adjusted net income as net income excluding, gain and losses from disposal of assets, store closure and exit costs, Public Offering Expenses , the loss on extinguishment of debt and the related tax impact of those adjustments. For the first quarter of 2016, such further adjustments to net income and EBITDA were immaterial; thus only EBITDA is presented.

These non-GAAP measures are intended to provide additional information only and do not have any standard meanings prescribed by GAAP. Use of these terms may differ from similar measures reported by other companies. Because of their limitations, none of these non-GAAP measures should be considered as a measure of discretionary cash available to use to reinvest in growth of the company’s business, or as a measure of cash that will be available to meet the company’s obligations. Each of these non-GAAP measures has its limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of the company’s results as reported under GAAP.

SPROUTS FARMERS MARKET, INC.AND SUBSIDIARIES

NON-GAAP MEASURE RECONCILIATION

(UNAUDITED)

(IN THOUSANDS)

The following table shows a reconciliation of adjusted net income and adjusted EBITDA to net income, and adjusted earnings per share to net income per share, for the thirteen weeks ended March 29, 2015:

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Source: Sprouts Farmers Market, Inc.

Phoenix, AZ

5/5/16