Whole Foods Market, Inc. (Nasdaq:WFMI) has posted $0.35 EPS diluted on sales of $1.51 billion. The organic food grocer saw 14% ending square footage growth and a 7.0% increase in comparable store sales on top of a 9.9% increase in the prior year. The negative impact on comparable store sales growth of Easter shifting from the third quarter last year to the second quarter this year was approximately 76 basis points in the quarter. Identical store sales (excluding four relocated stores and two major expansions) increased 5.8%.
The short version is that consensus estimates are $0.33 EPS on $1.54 Billion in revenues. The company also said it spent $100 million in share buybacks and still has another $100 million that can be spent for repurchases. The Company also expanded its existing $100 million revolving credit line to $200 million during the quarter. Whole Foods plans 18 to 20 new store completions this year.
For fiscal year 2007, on a 52-week to 52-week basis, the Company expects total sales growth of 13% to 17% and comparable store sales growth of 6% to 8%. For fiscal year 2007, the Company expects operating income before pre- opening and relocation costs as a percentage of sales to be in line with its 5.9% results year to date. Longer term, the Company’s goal is to reach $12 billion in sales in fiscal year 2010.
Shares are now trading up 9% in after-hours trading, and you can bet there is some short covering. The Mackey blogging issues mostly came up after the cut-off date here on these results, although that is still being deemed more of a stock and corporate issue rather than a brand issue. The company has said it expects to receive a court ruling bythe middle of August regarding its proposed buyout of Wild Oats (NASDAQ:OATS). John Mackey is also the one giving the quotes in the press release, so it doesn’t look like he’s planning on going away any time soon. So far this report is being very well received despite the ongoing issues over the last month.
Jon C. Ogg
July 31, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.