Sprouts Farmers Market Stock Crashes 26% Amid Earnings Miss and Weak Guidance Ranks 129th in Volume

Market Snapshot

, 2025, marking one of the largest single-day declines in the stock’s history. , , ranking the stock 129th in volume among U.S. equities. The decline followed the company’s third-quarter earnings report, which revealed a revenue shortfall and weak forward guidance, overshadowing an earnings per share (EPS) beat. , , .

Key Drivers Behind the Selloff

Sprouts’ sharp decline was primarily driven by its mixed third-quarter results and cautious guidance for the fourth quarter. , . More significantly, , . This weak outlook signaled slowing momentum in a key retail metric, raising concerns about the company’s ability to navigate a challenging economic environment.

The earnings report also highlighted broader macroeconomic pressures. CEO acknowledged that consumer spending had moderated faster than expected, with price-conscious shoppers reducing discretionary purchases. This trend, compounded by difficult year-over-year comparisons, . Analysts at RBC Capital and BMO Capital noted that these challenges were exacerbated by a three-year stretch of strong prior-year performance, which now created a “worse-than-feared” backdrop for near-term comparisons.

Brokerage reactions further amplified the selloff. Following the earnings report, multiple firms cut their price targets for SFM. , , both maintaining “Market Perform” or “Neutral” ratings. , . .

The stock’s volatility also reflected broader market sentiment. . Analysts at noted a surge in retail sentiment, . However, institutional analysts remained cautious, .

Underlying the selloff were structural concerns about the grocery sector. , while robust, . The company’s expansion strategy, , also drew scrutiny. While management emphasized long-term growth potential, .

In summary, , weak guidance, and broader macroeconomic pressures. While the company maintains strong profitability metrics, . Investors now await clarity on whether management can stabilize same-store sales growth and navigate the evolving retail landscape.