Sprouts Farmers Market(US:SFM) Businesswire·2025-12-15 20:19Core Viewpoint - A securities fraud class action lawsuit has been filed against Sprouts Farmers Market, Inc. on behalf of investors who acquired its securities during the specified Class Period, following disappointing financial results and guidance cuts [1][2]. Financial Performance - On October 29, 2025, Sprouts reported third-quarter results showing comparable-store sales growth of 5.9%, which was below the company's prior guidance [2]. - The company revised its full-year comparable store growth expectations to flat to 2%, attributing the results to challenging year-on-year comparisons and signs of a softening consumer [2]. - Following the announcement, Sprouts' stock price dropped by $27.3, or 26.1%, closing at $77.25 per share on October 30, 2025, resulting in significant losses for investors [2]. Allegations in the Lawsuit - The lawsuit alleges that during the Class Period, the defendants made materially false and misleading statements and failed to disclose adverse facts about the company's business and prospects [3]. - Specific allegations include: - Misrepresentation of the resilience of Sprouts' customer base to macroeconomic conditions [3]. - Inaccurate portrayal of the impact of "trade-down" dynamics on sales [3]. - Overstated guidance on comparable sales and growth trajectory, which did not reflect the actual slowdown in sales growth [3]. - Positive statements made by the defendants were misleading and lacked a reasonable basis [3].