Sprouts Forecasts Steeper Sales Decline, Plans Price Cuts

Sprouts Farmers Market expects comparable-store sales to fall more sharply in the fourth quarter and plans nationwide price changes in January, as it responds to weaker customer activity and declining sales at established stores. The grocery chain reported third-quarter comparable-store sales fell 0.9% and forecast a 2% to 4% decline in the fourth quarter. It also projected fourth-quarter earnings per share of $0.47 to $0.51 on a 13-week basis. Management forecast comparable sales would decline about 1.7% for 2026 on a 52-week basis. Executives said the January price changes are intended to improve affordability and encourage shoppers to visit. Management expects the move to weigh on margins in the near term, and said it will assess customer response in the coming months. The company plans to continue opening stores while investing in existing locations. Sprouts reported third-quarter revenue of about $2.30 billion, up 4.7% from a year earlier, and adjusted earnings of $1.21 per share. That earnings figure was below the $1.22 consensus estimate cited in one financial summary. The company’s results and guidance signal weaker performance at established stores even as it...