Exhibit 99.1

SPROUTS FARMERS MARKET, INC. REPORTS THIRD QUARTER 2016 RESULTS

PHOENIX, November 3, 2016 (Globe Newswire) – Sprouts Farmers Market, Inc. (Nasdaq: SFM) today reported results for the 13-week third quarter ended October 2, 2016.  

Third Quarter Highlights:

“The Sprouts team delivered 15% sales growth, strong new store performance and our 38th consecutive quarter of positive same store sales, all despite a highly deflationary and competitive environment,” said Amin Maredia, chief executive officer of Sprouts Farmers Market. “The core fundamentals of our business remain strong, and we continue to prioritize product innovation, investing in our team members and infrastructure for scale, and enhancing the customer experience both in and out-of-store.”

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 referenced EBITDA and adjusted EBITDA, respectively. In addition, for 2015, the company has presented adjusted net income and adjusted earnings per share. In each case, the “adjusted” measure excludes the after-tax impact of disposal of assets, store closure and exit costs, secondary offering expenses and loss on extinguishment of debt.  For the first three quarters of 2016, such adjustments would be immaterial.  Accordingly, the company has presented net income, earnings per share and EBITDA for 2016 without adjustment and, where applicable, has provided comparisons of such measures to the corresponding adjusted measures from 2015. Where applicable, results are first presented on a GAAP basis and then on an adjusted basis.

Third Quarter 2016 Financial Results

Net sales for the third quarter of 2016 were $1.0 billion, a 15% increase compared to the same period in 2015.   Net sales growth was driven by a 1.3% increase in comparable store sales and strong performance in new stores opened.

Gross profit for the quarter increased 11% to $292 million, resulting in a gross profit margin of 28.1%, a decrease of 80 basis points compared to the same period in 2015.  This reflects 60 basis points from increased price investments in certain categories in response to the ongoing deflationary and promotional environment and slightly higher shrink from lower comp sales, with an additional 20 basis points of deleverage from occupancy.

Direct store expenses (“DSE”) as a percentage of sales for the quarter increased 120 basis points to 20.9% compared to the same period in 2015.  Excluding the pre-tax loss on disposal of assets in the third quarter of 2015, DSE as a percentage of sales increased 130 basis points.  Thirty basis points of this increase related to cycling a lower medical benefit expense from the prior year.  The remaining increase was primarily due to deleverage from lower comp sales growth, higher payroll expense from planned increases in wages and training costs implemented at the beginning of the year, and the impact of opening a greater number of new stores in 2016.

Selling, general and administrative expenses (“SG&A”) as a percentage of sales for the quarter improved 10 basis points to 2.9%, compared to the same period in 2015. This was primarily driven by lower bonus expense versus the prior year, partially offset by higher stock compensation costs due to executive changes in 2015.

Net income for the quarter was $24 million, down $8 million, or 25% from the same period in 2015.  Excluding the after-tax impact of the loss on disposal of assets and the store closure and exit costs in the third quarter of 2015, net income for the quarter decreased $9 million, or 27% compared to adjusted net income of $33 million for the same period in 2015.  Diluted earnings per share was $0.16, a 24% decrease from diluted and adjusted diluted earnings per share of $0.21 for the same period in 2015.  These results were driven by lower margins as a result of the stepped-up promotional environment and increased store payroll.

Fiscal Year-to-Date Financial Results

For the 39-week period ended October 2, 2016, net sales were $3.1 billion, or a 15% increase compared to the same period in 2015.  Growth was driven by a 3.4% increase in comparable store sales and solid performance in new stores opened.  Net income was $107 million, up $6 million, or 6%, from the same period in 2015. Excluding the after-tax impact of the loss on extinguishment of debt, store closure and exit costs, secondary offering expenses and loss on disposal of assets through the first three quarters of 2015, net income increased $1 million, or 1%, compared to adjusted net income of $106 million for the same period in 2015. Diluted earnings per share was $0.71, a 9% increase from diluted earnings per share of $0.65 and a 4% increase from adjusted diluted earnings per share of $0.68 for the same period in 2015. These results were driven by fewer shares outstanding due to our repurchase program and higher gross margins due to deflation, partially offset by price investments, increased store payroll and equity-based compensation expense.

Growth and Development

During the third quarter of 2016, we opened 10 new stores: one each in Arizona, Georgia, Tennessee and Oklahoma; and six in California. Two additional stores have been opened in the fourth quarter, resulting in 35 stores opened year-to-date for a total of 252 stores in 13 states as of November 3, 2016. The company expects to open a total of 36 stores in 2016, representing a 17% increase in total store count.

Leverage and Liquidity

We generated cash from operations of $196 million year-to-date through October 2, 2016 and invested $135 million in capital expenditures net of landlord reimbursement, primarily for new stores. In addition, we repurchased 8.2 million shares of common stock for a total investment of $188 million through the third quarter of 2016 under our $150 million and $250 million share repurchase authorizations. We ended the quarter with a $205 million balance on our revolving credit facility, $2 million of letters of credit outstanding under the facility, and $50 million in cash and cash equivalents.  Subsequent to the end of the quarter and through October 31, 2016, we repurchased an additional 2.9 million shares of common stock for a total investment of $249 million year-to-date under both our share repurchase authorizations.

2016 Outlook

On September 7, 2016, we updated our third quarter and full-year 2016 guidance primarily due to the significant ongoing deflation and the stepped-up promotional environment. Given our third quarter performance, we have raised the bottom of full-year comparable store sales growth range and maintained our EPS guidance. This change and additional guidance for 2016 are provided below:

Please see the explanation and reconciliation of EBITDA, adjusted EBITDA, adjusted net income and adjusted earnings per share to the comparable GAAP measures for the 13 and 39 weeks ended October 2, 2016 and September 27, 2015, as applicable, in the tables included below.

Third 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, November 3, 2016, during which Sprouts executives will further discuss our third 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: 95171746.

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, outlook and new store openings 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 24,000 team members and operates more than 250 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 referenced EBITDA for 2016 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, amortization and accretion, and defines adjusted EBITDA as EBITDA as further adjusted to exclude store closure and exit costs, gains and losses from disposal of assets, 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 thirteen and thirty-nine weeks ended October 2, 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.

The following table shows a reconciliation of EBITDA to net income for the thirteen and thirty-nine weeks ended October 2, 2016 and September 27, 2015:

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 and thirty-nine weeks ended September 27, 2015:

###

Source: Sprouts Farmers Market, Inc.

Phoenix, AZ

11/3/16