Sprouts cuts 2026 EPS outlook to about $4.80, from $5.32-$5.40 in July

Sprouts Farmers Market lowered its full-year 2026 outlook on 28 October 2026 and now expects diluted EPS of about $4.80 on a 52-week basis, according to its third-quarter results release. In its 29 July release the grocer had guided to $5.32-$5.40, so the new figure sits about 10% below the bottom of the old range, by Polstob's calculation. The outlook leaves out the 53rd week of fiscal 2026, which falls in the fourth quarter. Sprouts now estimates that week will add about $0.16 of diluted EPS, $190m of sales and $20m of income before interest and taxes, against $0.21, $200m and $28m estimated in July.

In the 13 weeks to 27 September 2026, net sales rose 5% to $2.305bn from $2.200bn a year earlier, but comparable store sales fell 0.9%, short of the -0.5% to +1.5% range Sprouts had guided in July. Diluted EPS was $1.21, against $1.22 a year earlier and inside the July guide of $1.20-$1.24. That was one cent below the $1.22 Zacks consensus of six estimates shown on Nasdaq.com on 29 October. Net income fell to $113.4m from $120.1m a year earlier. EBIT, a non-GAAP measure the company defines as net income before net interest and the tax provision, slipped to $152.8m from $157.4m. Gross profit was 38.2% of net sales, against 38.7% a year earlier, by Polstob's calculation.

Sinclair said in the release that Sprouts is "increasing investments to enhance affordability and deepen customer engagement". For the fourth quarter, on a 13-week basis, the company guides comparable store sales of -2% to -4% and diluted EPS of $0.47-$0.51. The new full-year EBIT outlook of about $605m is $70m-$80m below the July range, by Polstob's calculation, and net sales growth is now seen at about 4.3%. Over the first 39 weeks of 2026, net sales were $6.960bn, against $6.657bn a year earlier, and diluted EPS was $4.30, against $4.38.

The shares closed the regular session on 28 October at $62.00, down 3.74% on the day, according to Nasdaq. The company furnished the results to the SEC under Item 2.02 of a Form 8-K accepted at 16:04 ET, after the close. In pre-market trading on 29 October, Nasdaq.com showed the shares at $47.31 at 07:08 ET (12:08 CET), 23.7% below the regular close by Polstob's calculation. Pre-market prices can change before the regular session opens at 09:30 ET (14:30 CET). RBC Capital downgraded Sprouts to sector perform from outperform on 29 October and cut its price target to $49 from $111, Investing.com reported.

Sprouts opened 15 stores in the quarter, a record according to Sinclair, and had 504 stores in 25 states on 27 September 2026. It kept its 2026 targets of 42 net new stores and about $310m of net capital spending. The company ended the quarter with $229m of cash and cash equivalents and nothing drawn on its $600m revolving credit facility.