> ## Content Index
> Fetch the complete content index at: https://www.bullished.co/llms.txt
> Use this file to discover other available public pages before exploring further.

# Sprouts Forecasts Fourth-Quarter Sales Drop At Established Stores And Steps Up Spending To Win Shoppers Back
- URL: https://www.bullished.co/sprouts-forecasts-fourth-quarter-sales-drop-at-established-stores-and-steps-up-spending-to-d89ae9f1/
- Published: 2026-10-28T20:14:30.000Z
- Updated: 2026-10-28T20:14:30.000Z
- Description: The grocer guides fourth-quarter earnings to $0.47 to $0.51 a share after third-quarter sales at older stores slipped 0.9%.
- Author: Matteo Parrino
- Tags: Earnings, SFM, Industry: Consumer Staples

[Sprouts Farmers Market](https://www.bullished.co/tag/sfm/), the Phoenix-based specialty grocer focused on fresh, natural and organic food, said Wednesday that its sales at stores open at least a year [fell 0.9%](https://www.sec.gov/Archives/edgar/data/0001575515/000157551526000059/sfm-20260927xex991.htm?ref=bullished.co) in the third quarter, and it forecast a steeper drop of 2.0% to 4.0% for the fourth. CEO Jack Sinclair blamed a "challenging consumer environment" and a cyclospora disruption, and said the company is putting more money into affordability.

## Sales up 5%, earnings a penny lower

Net sales rose 5% to $2.3 billion in the quarter ended September 27, 2026, helped by new stores. Diluted earnings per share were $1.21 [against $1.22](https://finance.yahoo.com/markets/stocks/articles/whats-sprouts-farmers-probability-earnings-145800937.html?.tsrc=rss&ref=bullished.co) a year earlier, and net income slipped to $113.4 million from $120.1 million.

Operating profit before interest and taxes was $152.8 million, down from $157.4 million, and gross margin eased to 38.2% from 38.7%. Fewer shares outstanding cushioned per-share results: the diluted count was about 93.7 million against 98.7 million a year ago.

For the first nine months, comparable sales were down 1.2% and diluted earnings per share were $4.30.

## Affordability push and a record store opening

Sinclair said in the release the company recognizes "the need to improve our performance" and is "increasing investments to enhance affordability and deepen customer engagement." He also pointed to a record 15 store openings in the quarter, which lifted the chain to 504 stores in 25 states.

Sprouts sells fresh produce at the center of its stores, alongside an assortment built around organic, gluten-free, plant-based and non-GMO products. It plans 42 net new stores this year.

## The outlook, with the extra week stripped out

For the fourth quarter, on a 13-week basis, Sprouts guided to diluted earnings of $0.47 to $0.51 per share alongside the 2.0% to 4.0% comparable-sales decline.

The full-year outlook, on a 52-week basis, calls for net sales growth of about 4.3%, comparable sales down about 1.7%, earnings before interest and taxes of about $605 million and diluted earnings of about $4.80 per share. Capital spending is expected at about $310 million, net of landlord reimbursements.

Fiscal 2026 is a 53-week year, with the extra week in the fourth quarter. Sprouts estimates that week adds about $190 million in sales, $20 million in earnings before interest and taxes and $0.16 per share.

## Buybacks continue, debt-free revolver

Sprouts repurchased 1.1 million shares for $89 million in the quarter, excluding excise tax, and $299 million for the first nine months. It ended the quarter with $229 million in cash and nothing drawn on its $600 million revolving credit facility.

Operating cash flow was $555 million for the first nine months, and capital spending was $275 million net of landlord reimbursement.

Executives were scheduled to walk through the affordability plans and the fourth-quarter outlook on a call at 5:00 p.m. Eastern on Wednesday.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — Sprouts Farmers Market, Inc. (SFM)](https://www.sec.gov/Archives/edgar/data/0001575515/000157551526000059/sfm-20261028.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit sfm-20260927xex991.htm — Sprouts Farmers Market, Inc. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001575515/000157551526000059/sfm-20260927xex991.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit sfm-ex992.htm — Sprouts Farmers Market, Inc. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001575515/000157551526000059/sfm-ex992.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit sfm-ex993.htm — Sprouts Farmers Market, Inc. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001575515/000157551526000059/sfm-ex993.htm?ref=bullished.co) — SEC EDGAR
- [What's Sprouts Farmers' Probability of an Earnings Beat This Season?](https://finance.yahoo.com/markets/stocks/articles/whats-sprouts-farmers-probability-earnings-145800937.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance

### More on Sprouts Farmers Market

- [Sprouts Technology Chief Bahrenburg Leaves Role, Will Advise Through March 31, 2027](https://www.bullished.co/sprouts-technology-chief-bahrenburg-leaves-role-will-advise-through-march-31-2027-4af002d2/)

[All Sprouts Farmers Market (SFM) coverage →](https://www.bullished.co/tag/sfm/)