Sprouts Farmers Market Inc. shares tumbled after cutting its outlook, as the grocer's sales suffered from the cyclospora lettuce outbreak and a gloomy consumer. Sprouts cut its full-year outlook after reporting third-quarter results that fell short of expectations. The company now expects 2026 comparable sales to fall 1.7%, compared with its earlier forecast of as much as 0.5% growth.
Analysts had projected a 0.2% decline. Shares of the Phoenix-based retailer, known for its fresh organic produce and wellness items, fell as much as 20% in postmarket trading Wednesday. The stock has dropped 22% since the start of the year.
This year's cyclospora outbreak, which was linked to shredded iceberg lettuce and infected almost 13,000 people, has hurt lettuce demand across the country. Grocer Albertsons Companies Inc. noted the sales impact earlier this month as it launched a business review, while struggling restaurant chain Salad and Go filed for bankruptcy in August, blaming the outbreak for sinking its turnaround efforts. Sprouts said it is working to upgrade its operations. "We recognize the need to improve our performance and are taking action to strengthen execution and drive traffic," Chief Executive Officer Jack Sinclair said in a statement.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing