Sprouts Farmers Market reports lower comparable sales in third quarter

Sprouts Farmers Market reported a 5% increase in third-quarter net sales but a slight decline in comparable store sales as the grocer cited a challenging consumer environment and a cyclospora disruption.

Net sales for the 13 weeks ended Sept. 27 totaled $2.3 billion, up 5% from the same period in 2025. Comparable store sales declined 0.9%.

Diluted earnings per share were $1.21, compared with $1.22 a year earlier.

“We recognize the need to improve our performance and are taking action to strengthen execution and drive traffic,” Jack Sinclair, chief executive officer of Sprouts Farmers Market, said in a statement.

The Phoenix-based retailer plans to increase investments in affordability and customer engagement, Sinclair said, while continuing to focus on its product assortment and shopping experience.

Sprouts opened 15 stores during the quarter, bringing its total to 504 stores in 25 states as of Sept. 27. Sinclair said the performance of newer stores and continued unit growth supported the company's long-term outlook.

The company ended the quarter with $229 million in cash and cash equivalents and no borrowings under its $600 million revolving credit facility.

Sprouts repurchased 1.1 million shares of common stock for $89 million, excluding excise tax. For the year to date through Sept. 27, the company generated $555 million in cash from operations and invested $275 million in capital expenditures, net of landlord reimbursements.

Looking ahead, Sprouts expects comparable store sales to decline between 2% and 4% in the fourth quarter. The company forecast diluted earnings per share of 47 cents to 51 cents for the period.

Fiscal 2026 will include 53 weeks, with the additional week falling in the fourth quarter. Sprouts estimates the extra week will contribute approximately $190 million in sales, $20 million in income before interest and taxes and 16 cents in diluted earnings per share.

For the full fiscal year on a 52-week basis, the company expects net sales growth of approximately 4.3% and a comparable store sales decline of about 1.7%.

Sprouts also forecast full-year earnings before interest and taxes of approximately $605 million and diluted earnings per share of about $4.80. The company expects to open 42 net new stores during the year and spend approximately $310 million on capital expenditures, net of landlord reimbursements.