Sprouts Farmers Market Q3 sales miss expectations amid challenging consumer environment

Overview

• US specialty grocer's Q3 sales rose 5% but missed analyst expectations

• Comparable store sales fell 0.9% amid challenging consumer environment and cyclospora disruption

• Company opened 15 new stores and repurchased $89 mln in stock during Q3

Outlook

• Sprouts sees Q4 comparable store sales down 2.0% to 4.0%

• Company expects Q4 diluted EPS of $0.47 to $0.51

• Sprouts forecasts full-year 2026 net sales growth of about 4.3%

Result Drivers

• CHALLENGING CONSUMER ENVIRONMENT - Co said consumer conditions weighed on performance in Q3

• CYCLOSPORA DISRUPTION - Co cited cyclospora disruption as a factor affecting Q3 results

• STORE EXPANSION - Co opened 15 new stores in Q3, contributing to unit growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the food retail & distribution peer group is "buy"

• Wall Street's median 12-month price target for Sprouts Farmers Market Inc is $92.00, about 42.8% above its October 27 closing price of $64.41

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• Oct 27 - Coca-Cola lifts profit forecast on international soda demand, flags higher costs

• Oct 27 - Coca-Cola Q3 profit tops estimates on zero sugar drink sales; lifts outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)