Sprouts Farmers Market, Inc. (Nasdaq: SFM), a leading specialty retailer focused on fresh, natural and organic foods, has reported its financial results for the 13-week third quarter ended September 27, 2026. The company recorded an increase in net sales compared with the prior-year period, while comparable store sales and diluted earnings per share reflected the challenging consumer environment and operational disruptions experienced during the quarter.
The company reported third-quarter net sales of $2.3 billion, representing a 5% increase compared with the same period in 2025. Comparable store sales declined 0.9%, while diluted earnings per share reached $1.21, slightly below the $1.22 reported in the third quarter of the previous year.
During the quarter, Sprouts continued to expand its store network, opening 15 new locations. These openings brought the company’s total store count to 504 across 25 states as of September 27, 2026.
Jack Sinclair, chief executive officer of Sprouts Farmers Market, acknowledged the challenges affecting the business and outlined the company’s priorities for improving performance.
“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,” Sinclair said.
He added that Sprouts is increasing investments to improve affordability and deepen customer engagement while continuing to build on the differentiated product assortment and shopping experience that distinguish the retailer.
Sinclair also expressed appreciation for the company’s teams and highlighted the achievement of opening a record 15 stores during the quarter. He noted that the strong performance of recently opened stores, combined with continued momentum in unit growth, reinforces the company’s confidence in its long-term growth opportunity.
Third Quarter Financial Performance
Sprouts Farmers Market generated $2.3 billion in net sales during the third quarter of fiscal 2026, an increase of 5% from the corresponding period in 2025. The sales growth reflects the company’s continued expansion and its position in the natural and organic grocery market.
However, comparable store sales declined 0.9% during the quarter. The company cited a challenging consumer environment and the impact of the cyclospora disruption as factors affecting its performance.
Comparable store sales are an important measure for grocery retailers because they provide insight into sales trends at established locations, excluding the impact of newly opened stores. The decline indicates that Sprouts continues to face challenges in driving customer traffic and sales growth across its existing store base.
Diluted earnings per share were $1.21 for the third quarter, compared with $1.22 in the same period last year. Although earnings per share remained relatively consistent year over year, management acknowledged the need to strengthen execution and improve overall business performance.
The company is responding by investing in affordability initiatives, customer engagement and operational improvements while maintaining its focus on differentiated products and the shopping experience.
Record Store Expansion Strengthens Growth Strategy
Store expansion remained a significant component of Sprouts Farmers Market’s growth strategy during the third quarter.
The company opened 15 new stores during the reporting period, marking a record number of openings for a single quarter. These additions increased Sprouts’ total footprint to 504 stores across 25 states as of September 27, 2026.
The expansion reflects the company’s continued efforts to reach additional customers and strengthen its presence in markets where demand for natural and organic food products continues to develop.
According to Sinclair, the performance of recent store vintages has been encouraging. The company believes that its newer locations demonstrate the potential of its differentiated retail model and support its continued investment in new markets.
Sprouts’ growth strategy combines new store development with investments in existing locations, product assortment, customer engagement and affordability. The company expects these initiatives to support its long-term expansion and strengthen its competitive position.
Cash Flow, Liquidity and Share Repurchases
Sprouts Farmers Market reported a strong liquidity position at the end of the third quarter.
The company finished the quarter with $229 million in cash and cash equivalents and no outstanding balance on its $600 million revolving credit facility.
The absence of borrowings under the revolving credit facility provides the company with additional financial flexibility as it continues to invest in store expansion, operational improvements and other strategic initiatives.
Sprouts also continued its share repurchase program during the quarter. The company repurchased approximately 1.1 million shares of common stock for a total investment of $89 million, excluding excise tax.
Share repurchases represent one component of the company’s capital allocation strategy, allowing it to return capital to shareholders while maintaining resources for business expansion and operational investments.
For the year-to-date period through September 27, 2026, Sprouts generated $555 million in cash from operations.
During the same period, the company invested $275 million in capital expenditures, net of landlord reimbursements. These investments primarily support the company’s ongoing development and expansion activities, including the opening of new stores and improvements to its retail infrastructure.
The company’s operating cash generation and available liquidity provide a foundation for continuing its growth strategy while addressing the operational challenges affecting the business.
Fourth Quarter 2026 Outlook
Sprouts Farmers Market also provided its outlook for the fourth quarter of fiscal 2026, which will cover a 13-week period.
The company expects comparable store sales to decline between 2.0% and 4.0% during the quarter.
Diluted earnings per share are projected to range from $0.47 to $0.51.
The outlook reflects the company’s expectations for the operating environment and its efforts to improve execution, increase customer traffic and strengthen affordability.
Management’s stated priorities include increasing investments to enhance the value proposition for customers, deepening customer engagement and building on the company’s differentiated assortment.
These initiatives are intended to help Sprouts respond to consumer pressures and improve performance across its existing store base.
Full-Year 2026 Financial Guidance
Sprouts Farmers Market provided its full-year 2026 outlook on a 52-week basis. The company noted that fiscal 2026 will be a 53-week year, with the additional week falling in the fourth quarter.
The company estimates that the 53rd week will contribute approximately $190 million in sales, $20 million in income before interest and taxes, and $0.16 in diluted earnings per share.
For the 52-week reporting period, Sprouts expects net sales growth of approximately 4.3%.
Comparable store sales are projected to decline approximately 1.7%, while earnings before interest and taxes are expected to reach approximately $605 million.
The company forecasts diluted earnings per share of approximately $4.80 for the 52-week period.
Sprouts also expects to open 42 net new stores during fiscal 2026, reflecting its continued commitment to expanding its retail footprint and increasing access to its natural and organic product offerings.
Capital expenditures, net of landlord reimbursements, are projected to total approximately $310 million for the year.
The company’s full-year guidance highlights the continued importance of store expansion and capital investment in its long-term strategy. At the same time, the projected decline in comparable store sales underscores the need to improve customer traffic and execution in the current operating environment.
Third Quarter 2026 Conference Call
Sprouts Farmers Market scheduled a conference call for 5:00 p.m. Eastern Time on Wednesday, October 28, 2026, to discuss its third-quarter 2026 financial results.
The company’s executives are expected to provide additional details regarding the quarter’s performance, business priorities and financial outlook.
A webcast of the conference call is available through the company’s investor relations webpage. Participants are encouraged to register approximately 10 minutes before the scheduled start time.
A replay of the webcast is expected to be available at approximately 8:00 p.m. Eastern Time on October 28, 2026.
The conference call provides investors and analysts with an opportunity to hear directly from management about the company’s financial performance, operational challenges and plans for the remainder of fiscal 2026.
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