Sprouts Slashes FY26 EPS Outlook to $4.80 as Cyclospora Hit Lingers
SFM is trading near its 52-week low of $60.47 (19% below the low) on elevated volume (3.1× avg).
Summary
Sprouts cut full-year 2026 EPS guidance to $4.80 from a prior $5.32-$5.40, well below the $5.53 consensus, and guided Q4 EPS to just $0.47-$0.51 versus a $1.21 estimate. Q3 net sales rose 5% to $2.3B but comps fell 0.9% and EPS of $1.21 missed, with management pinning 0.6% of the comp decline on the cyclospora outbreak. Gross margin compressed 50 bps to 38.2% on higher shrink and fuel costs, and EBIT margin fell 60 bps to 6.6%. Q4 comps are guided down 2% to 4% and FY26 comps down 1.7%, so the consumer weakness and outbreak drag are expected to persist through year-end. The stock is already near its 52-week low, and this guidance reset removes the earnings floor the prior outlook implied.
At the time of this announcement, SFM was trading at $48.89 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $5.8B. The 52-week trading range was $60.47 to $107.31. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Seeking Alpha.