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PHOENIX - Sprouts Farmers Market, Inc. (NASDAQ:SFM) shares tumbled 14% after the specialty grocer reported third-quarter revenue that fell short of analyst expectations, despite posting better-than-expected earnings.
The natural foods retailer reported revenue of $2.2 billion for the third quarter ended September 28, 2025, missing the consensus estimate of $2.23 billion, though it represented a 13% increase from the same period last year. Comparable store sales grew 5.9% YoY. Adjusted earnings per share came in at $1.22, exceeding analyst expectations of $1.17 and up from $0.91 in the year-ago period.
Sprouts opened 9 new stores during the quarter, bringing its total to 464 locations across 24 states.
"We are opening stores nationwide, and our strategy continues to resonate with our target customers, resulting in strong third quarter performance," said Jack Sinclair, chief executive officer of Sprouts Farmers Market. "Our passionate team members, financial foundation, and disciplined execution will position us to deliver sustainable earnings growth, as we navigate strong year-over-year comparisons."
For the fourth quarter, Sprouts provided guidance for comparable store sales growth of 0.0% to 2.0% and diluted earnings per share of $0.86 to $0.90. The company maintained its full-year 2025 outlook, projecting approximately 14% net sales growth, 7% comparable store sales growth, and diluted earnings per share of $5.24 to $5.28.
During the quarter, Sprouts entered into a new $600 million credit facility and authorized a $1 billion share repurchase program, buying back 0.4 million shares for $50 million. The company ended the period with $322 million in cash and no balance on its revolving credit facility.
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