Sprouts Shareholder Lawsuit Alleges Misleading Revenue Outlook

Sprouts Farmers Market spent 2025 telling investors a simple story. Their customers were loyal. Their sales were strong. And even with a cautious consumer, Sprouts said it would thrive.

But the truth? Things were already starting to crack. On June 4, executives insisted demand wasn't slowing. On July 13, they raised guidance, promising 7 to 9% comparable growth for the year. They told investors their shoppers were resilient and that any consumer weakness would actually help them.

Then October 29 hit. Sprouts revealed sales growth had slipped to under 6%. Fourth-quarter expectations collapsed to nearly 0. Full-year projections were slashed just months after being raised. And the stock? It plunged about 26% in a single day.

Investors were stunned. Confidence vanished. Now, more shareholders are joining the lawsuit.