Sprouts Stock Falls 23% After Weak Traffic and a Lower Fourth-Quarter Outlook

Sprouts Farmers Market (NASDAQ: SFM) shares fell 22.6% on Thursday, October 29, after its quarterly results and outlook pointed to continued pressure on store traffic. The grocer reported higher total sales and nearly flat earnings per share, but comparable sales declined and the company expects a larger decline in the current quarter, according to historical share-price data.

Comparable sales fell despite new-store growth#

Net sales were $2.3 billion, up 5% from a year earlier. Comparable store sales declined 0.9%, and diluted earnings per share were $1.21 versus $1.22 in the prior-year quarter. Sprouts said it opened 15 stores during the quarter, bringing its total to 504, according to its third-quarter release.

The company said the quarter was affected by a challenging consumer environment and a cyclospora disruption. In its results discussion, Sprouts estimated the disruption reduced comparable sales by about 0.6 percentage points. That helps explain part of the decline but does not account for the broader traffic trend on its own.

The Q4 forecast calls for a deeper comp decline#

Sprouts expects fourth-quarter comparable sales to fall 2% to 4% and diluted EPS of $0.47 to $0.51. For the full year on a 52-week basis, it expects approximately $4.80 in diluted EPS and comparable sales down about 1.7%. The fourth quarter includes a 53rd week, which the company estimates will add about $0.16 to diluted EPS.

Management said it is increasing investments in affordability and customer engagement and focusing on execution and traffic. The next report will show whether those efforts help stabilize comparable sales. Thursday's share-price decline reflects the weaker near-term outlook; it does not determine how quickly the business can recover.

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Published October 29, 2026. This article is informational and is not investment advice.