Actionable news
0
All posts from Actionable news
Actionable news in WFM: Whole Foods Market, Inc.,

Keep An Eye On Grocers Following Sprouts' Guidance Cut

Sprouts Farmers Markets NASDAQ:SFM, Kroger Company The NYSE:KR - Keep An Eye On Grocers Following Sprouts' Guidance Cut

Shares of Sprouts Farmers Market Inc SFM 14.34% plunged around 15 percent on Wednesday and hit a new 52-week low of $19.00 after the company updated its third-quarter and full-year 2016 guidance ahead of an industry conference.

Sprouts said it expects comparable store sales growth for the third quarter to be "approximately flat." The company cited the impact of deflation, a heightened promotional environment and traffic trends.

The company also said it expects comparable store sales growth for the full year to be in a range of 1.5–2.5 percent and its full-year earnings to be in a range of $0.83–$0.86 per share.

Wall Street analysts were previously expecting the organic grocer to earn $0.94 per share for the full year.

Related Link: Sprouts Farmers Market Harvested Industry-Leading Comp Sales In Recent Quarter

"At Sprouts, we have operated and managed through similar competitive and deflationary periods," said Amin Maredia, chief executive officer of Sprouts Farmers Market. "Our team remains laser focused on accelerating traffic and sales in the current environment, while continuing to execute our strategic business plan to build long-term value."

Watch The Grocers

One of Sprouts' closest peers in the organic space, Whole Foods Market, Inc. WFM 5.11% saw its shares dip lower by over 5 percent in reaction to Sprouts' guidance.

Kroger Co KR 3.95%, a traditional grocer that has been expanding heavily into the organic space, also saw its shares dip lower by nearly 4 percent.

On the other hand, shares of Wal-Mart Stores, Inc. WMT 0.53% were lower by less than 0.50 percent. Wal-Mart's ambitions do dominate the grocery space has been well known to investors and the retailer recently teamed up with Uber and Lyft to deliver groceries to customers.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.