Sprouts Farmers Market plans nationwide price changes in January to address weak customer activity, while forecasting comparable sales will decline about 1.7% in 2026 on a 52-week basis.
The company’s results release showed comparable-store sales down 0.9% in Q3 and projected a 2% to 4% decline in Q4. It forecast fourth-quarter earnings per share of $0.47 to $0.51.
On the Oct. 28 earnings call, executives outlined Q4 gross-margin deleverage of about 90 basis points and selling, general and administrative (SG&A) deleverage of roughly 170 basis points. These measures indicate margin pressure relative to sales, not a separate forecast for earnings before interest and taxes (EBIT).
Executives said traffic, units sold and shopping frequency had yet to recover, and that core-store performance needed attention. Management said the January price changes aim to improve affordability and encourage visits, while expecting the effort to weigh on margins in the near term.
Incoming CEO Nick Konat pointed to competition and consumers’ shift toward value channels as contributors to softer demand. Management linked a cyclospora disruption to comparable-sales weakness; it said higher shrink and fuel costs pressured gross margin, and that shrink also reflected lower sales and the disruption.
Chief Financial Officer Curtis Valentine said January is typically Sprouts’ strongest sales period and described new stores as high-return. The company plans to keep opening stores while investing in existing locations. Chief Executive Jack Sinclair said, “We recognize that our recent performance needs to improve.”
Management aims to keep EBIT margins above 5% over time. It plans to assess customer response in the coming months and expects to provide more specific 2027 guidance in February.
