1. Faruqi & Faruqi is investigating claims against Sprouts Farmers Market. 2. Class action deadline for investors is January 26, 2026. 3. Recent earnings report showed 4.3% decline in comparable store growth. 4. Sales growth forecast reduced from 7.5%-9% to 7%. 5. Stock price fell by $22.64 to $81.91 following news.
FAQ
Why Bearish?
The disappointing earnings and sales growth projections could lead to further declines, similar to past instances in retail where unexpected downturns resulted in significant stock price drops.
How important is it?
The ongoing litigation and negative earnings report significantly affect investor sentiment and stock valuation.
Why Short Term?
The immediate effects of the lawsuit and earnings report are likely to manifest quickly, impacting market sentiment in the near term.
Faruqi & Faruqi, LLP Investigates Claims on Behalf of Sprouts Farmers Market Investors
Faruqi & Faruqi, LLP, a prominent national securities law firm, is currently investigating potential claims concerning Sprouts Farmers Market, Inc. ("Sprouts" or the "Company") (NASDAQ: SFM). This investigation comes in light of a federal securities class action lawsuit filed against the company, with a critical deadline for investors to act by January 26, 2026.
Background of the Investigation
Investors who purchased or acquired securities in Sprouts between June 4, 2025, and October 29, 2025, are encouraged to reach out to Josh Wilson, a partner at Faruqi & Faruqi, for advice on their legal options. He can be contacted directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
Allegations Against Sprouts Farmers Market
The pending lawsuit alleges that Sprouts and its executives breached federal securities laws by issuing false and misleading statements. Specifically, the complaint highlights that:
- Defendants made overly optimistic statements while concealing material adverse facts about Sprouts' growth potential.
- A slowdown in consumer spending was not accurately portrayed, leading to inflated share prices.
- Investors were misled regarding the company’s ability to withstand economic downturns.
Recent Financial Performance
On October 29, 2025, Sprouts released its third-quarter fiscal results, which indicated a troubling 4.3% decrease in comparable store sales, falling short of previous expectations. Additionally, the company's projections for the upcoming fourth quarter have been dramatically lowered to anticipated growth of only 0%-2%.
This forecast represents a stark reduction from the previous guidance of 7.5%-9% growth for the full year, now downgraded to a modest 7%. Despite management's attributions of these shortfalls to tough year-over-year comparisons and a soft market, many investors are concerned about the company's prior claims of resilience in varying economic climates.
As a result of these revelations, SFM stock plummeted by $22.64 per share, opening at $81.91 per share.
Next Steps for Investors
Investors who wish to assume the role of lead plaintiff in this class-action lawsuit should proceed through their chosen counsel. Those who prefer not to participate actively will remain class members without affecting their ability to seek recovery.
Faruqi & Faruqi is also inviting individuals with relevant information regarding Sprouts’ conduct, including former employees and whistleblowers, to contribute to this investigation.
Contact Information
To learn more about the class action against Sprouts Farmers Market, interested parties can visit www.faruqilaw.com/SFM or contact partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310) for further guidance.