Sprouts Farmers Market(US:SFM) Globenewswire·2025-12-19 17:00Core Viewpoint - The article discusses a class action lawsuit against Sprouts Farmers Market, Inc. due to significant stock price decline following disappointing financial results and guidance revisions, indicating potential misrepresentation of the company's performance and outlook [1][2][3]. Group 1: Financial Performance - On October 29, 2025, Sprouts reported third-quarter results with 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 this 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 [2]. Group 2: Allegations in the Lawsuit - The lawsuit alleges that during the class period, Sprouts made materially false and misleading statements regarding its business and operations [3]. - Specific claims include that Sprouts' customer base was not as resilient as claimed, and the company was not adequately positioned to handle economic changes [3]. - The lawsuit also contends that the reported sales growth figures did not reflect a sustainable trajectory, as the company faced a significant slowdown in sales growth due to cautious consumer behavior [3].