The organic and natural foods retailer reported earnings of $0.78 per share on $3.86 billion in revenue. Thomson Reuters had the consensus estimates of $0.77 EPS and $3.87 billion in revenue. Same-store sales were up over 7% and the company is still targeting 32 to 34 new stores in 2013.
What is hurting besides the revenues reported is that guidance is looking a tad more down to earth. The company is now expecting sales growth of 10% to 11% with identical store sales growth of 6.3% to 7.7%. The company said it is maintaining full 2013 guidance of $2.83 to $2.87 per share versus estimates of $2.90 EPS. On a 52-week to 52-week basis, the company continues to expect sales growth of 12% to 14% and diluted earnings per share growth of 14% to 16%.
This is a case where valuation has caught up to reality. At the company’s top-end of guidance, Whole Foods has a forward P/E ratio of more than 33 for 2013 and its closing bell market cap at $96.90 is right at $18 billion.
Shares are indicated down about 6% around $92.00, and the consensus analyst target before earnings was $106.30.
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