Sprouts Farmers Market Reports Q3 2026 Results Amidst Supply Disruptions and Declining Transaction Counts
Sprouts Farmers Market (SFM) reported third-quarter sales of $2.3 billion, a 5% increase driven by new store openings, though comparable store sales fell by 0.9%. The decline in comparable sales was heavily impacted by a 60 basis point reduction due to Cyclospora-related product supply disruptions and a 3.3% drop in transaction counts, which were only partially offset by larger basket sizes. Profitability faced headwinds as gross margins decreased to 38.2% due to elevated fuel costs and higher inventory shrink. While e-commerce grew by 12% and private label sales remained strong at 26% of total revenue, management issued cautious guidance for the remainder of the year. Full-year comparable sales are projected to decline by approximately 1.7%, with Q4 guidance suggesting further contraction in comparable sales between -2.0% and -4.0%.
Tickers: $SFM
Topics: comparable store sales earnings report e-commerce expansion net income revenue growth store openings
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