Sprouts Farmers Market Inc. shares slid 6.8% in premarket trade Wednesday, after the company lowered its full-year sales and profit outlook, citing an increasingly competitive and promotional environment and its own cautious outlook. The grocery chain said it now expects third-quarter same-store sales to be flat, while full-year same-store sales are expected to up 1.5% to 2.5%. The company is expecting full-year per-share earnings of 83 cents to 86 cents. The FactSet consensus is for full-year EPS of 94 cents, full-year same-store sales growth of 3.9% and third-quarter same-store sales growth of 3.6%. "The prolonged deflationary environment, competitive landscape and industry dynamics have prompted heavy promotions across the industry, adversely impacting retail deflation and traffic generation," the company said. The company's board has approved a share buyback of up to $250 million. Sprouts Farmers Market has 240 stores across the U.S. Shares are down 14.2% in the year so far, while the S&P 500 has gained about 7%.
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