Key Highlights

  • SFM shares are trading 22.40% lower at $48.12 on Thursday, October 29, 2026.
  • Third-quarter net sales grew about 5% to $2,304.7 million, but comparable store sales dropped 0.9%.
  • Diluted EPS came in at $1.21 against $1.22 a year earlier, and gross margin eased to 38.2% from 38.7%.
  • Fourth-quarter guidance points to comparable sales down 2% to 4% and EPS of $0.47 to $0.51.
  • Full-year EPS is guided to roughly $4.80 on a 52-week basis, with comparable sales down about 1.7%.

Sprouts Earnings Reaction: What Is Behind the 22.40% Slide on Thursday?

Sprouts Farmers Market (NASDAQ:SFM) shares are trading 22.40% lower at $48.12 on Thursday, October 29, 2026, following the grocer's third-quarter report on Wednesday, October 28. The implied prior close is about $62.01 (calculated), and the stock was near $64 on October 20.

The company runs natural and organic grocery stores built around fresh produce. It opened 15 stores in the quarter and shut one weaker location when its lease expired. The market response is tied to the forecast more than to the quarter just reported.

Sprouts Third Quarter: Did Steady Earnings Mask Weakening Comparable Sales?

Net sales for the 13 weeks ended September 27, 2026 grew about 5% to $2,304.7 million from $2,200.4 million. Comparable store sales fell 0.9%, after rising 5.9% in the same quarter last year.

Gross margin was 38.2%, down from 38.7%. EBIT reached $152.8 million, a 6.6% margin versus 7.2% before, and diluted EPS was $1.21 against $1.22.

Return on invested capital dropped to 16.1% from 18.3% a year earlier. The business generated $186 million in cash and repurchased $89 million of its shares during the quarter.

Sprouts Outlook: How Does a 2% to 4% Comp Decline in the Fourth Quarter Reshape the Year?

For the fourth quarter, measured over 13 weeks, management expects comparable store sales to decline 2% to 4% and diluted EPS of $0.47 to $0.51. That marks a weaker path than the negative 0.9% comparable result posted in the third quarter.

The full-year view, given on a 52-week basis, includes net sales growth near 4.3%, comparable sales down about 1.7%, EBIT near $605 million and diluted EPS around $4.80. Before the report, guidance stood at EPS of $5.32 to $5.40 and comparable sales between negative 0.5% and positive 0.5%.

A 53rd week falls in the fourth quarter, and the company estimates it adds about $190 million of sales, $20 million of EBIT and $0.16 of EPS. It expects 42 net new stores and capital spending of about $310 million.

Sprouts Nine-Month Picture: How Much Cash Went to Repurchases as Growth Cooled?

Across the first nine months, net sales grew 5% while comparable sales declined 1.2%. Diluted EPS was $4.30, a 2% decrease, and 28 stores opened.

Cash generation totaled $555 million, and share repurchases came to $299 million excluding excise tax. Estimates ahead of the report had pointed to third-quarter EPS near $1.22 and revenue around $2.33 billion, so the quarter finished a little under both.

What to Watch Next: Fourth-Quarter Comps and the 53-Week Year-End Report

The next test is the fourth-quarter report, which will show whether comparable sales fall inside the 2% to 4% decline range and how much the added week contributes. New store openings toward the 42-store target, gross margin relative to the 38.2% third-quarter figure and continued buybacks will shape how the company's growth story is judged.