Sprouts Farmers Market reported comparable store sales of negative 0.9 percent for its 13-week third quarter ended Sept. 27, while net sales grew 5 percent to $2.3 billion on the strength of new stores. The specialty grocer opened a record 15 stores during the quarter, ending with 504 stores in 25 states.
“While a challenging consumer environment and the cyclospora disruption affected the quarter, we recognize the need to improve our performance and are taking action to strengthen execution and drive traffic,” said Jack Sinclair, CEO of Sprouts Farmers Market. “We are increasing investments to enhance affordability and deepen customer engagement, while building on the differentiated assortment and experience that define Sprouts. The strong performance of our recent store vintages and continued momentum in unit growth reinforce our confidence in the significant opportunity ahead.”
Diluted earnings per share came in at $1.21, compared with $1.22 a year earlier. Sprouts ended the quarter with $229 million in cash and no balance on its $600 million revolving credit facility, repurchased 1.1 million shares for $89 million and generated $555 million in cash from operations year to date, with $275 million invested in capital expenditures net of landlord reimbursement.
Outlook
For the fourth quarter, Sprouts projects comparable store sales of negative 2 percent to negative 4 percent on a 13-week basis. For the full year on a 52-week basis, the company expects net sales growth of approximately 4.3 percent, comparable store sales of approximately negative 1.7 percent, EBIT of approximately $605 million and 42 net new stores, with capital expenditures of approximately $310 million.
Fiscal 2026 is a 53-week year, with the extra week falling in the fourth quarter; Sprouts estimates the 53rd week will add approximately $190 million in sales and $20 million in income before interest and taxes.
Phoenix-based Sprouts employs approximately 36,000 team members and operates more than 500 stores in 25 states.
Related: Sprouts Adding 5 More Stores In Tennessee, California, Arizona And Texas