Law Offices of Frank R. Cruz Encourages Sprouts Farmers Market, Inc. (SFM) Shareholders To Inquire About Securities Fraud Class Action

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of shareholders who purchased Sprouts Farmers Market, Inc. (“Sprouts” or the “Company”) (NASDAQ: SFM) securities between June 4, 2025 and October 29, 2025, inclusive (the “Class Period”). Sprouts investors have until January 26, 2026 to file a lead plaintiff motion.

IF YOU SUFFERED A LOSS ON YOUR SPROUTS FARMERS MARKET, INC. (SFM) INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.

You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at [e-mail], by telephone at [phone], or visit our website at www.frankcruzlaw.com.

What Happened?

On October 29, 2025, Sprouts announced third-quarter 2025 results, including softer-than-expected comparable-store sales growth of 5.9%, falling below the Company’s own prior guidance. The Company also slashed guidance for comparable store growth for the full year, now expecting only flat to 2% growth. The Company attributed its results to previously undisclosed “challenging year-on-year comparisons” and “signs of a softening consumer.”

On this news, Sprouts’ stock price fell $27.3, or 26.1%, to close at $77.25 per share on October 30, 2025, thereby injuring investors.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Sprouts’ customer base was not "more resilient" to the macroeconomic environment and the Company was not positioned to "cope and deal with the changes" caused by economic uncertainty; (2) the "trade-down" dynamics—shifting consumer spending from food away from home to food at home—were either insufficient to offset a slowdown in sales or would fail to materialize as a meaningful "tailwind" for the Company; (3) the Company’s increased comparable sales guidance and reported two-year stack figures did not accurately reflect a sustainable growth trajectory, as Sprouts was actually facing a significant slowdown in sales growth due to a more cautious consumer; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Contact Us To Participate or Learn More:

If you purchased Sprouts securities, wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at:

Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: [phone]
Email: [e-mail]
Visit our website at: www.frankcruzlaw.com

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.