DOW JONES NEWSWIRES
Whole Foods Market Inc.'s (WFMI) fiscal second-quarter earnings
grew 33% as same-store sales increased and gross margins expanded.
The company said the results were the strongest it has reported in
the past five years.
The natural-foods supermarket chain also raised its full-year
earnings estimate to $1.87 to $1.90 a share from its prior view of
$1.76 to $1.80. It sees sales growth of 11.7% to 12.6%, compared
with the February view of up 10.7% to 12.8%.
Shares rose 5.8% to $63.20 in after-hours trading. The stock is
up 18% this year through Wednesday's close.
Whole Foods has reported steady same-store sales growth of late
as consumer demand for natural and organic products continues to
increase, helping the company outperform its peers. The company's
higher-income demographics are less affected by economic woes such
as rising gas prices, although a report last week that said Whole
Foods slowed orders to suppliers in April raised a red flag.
For the quarter ended April 10, Whole Foods reported a profit of
$89.9 million, or 51 cents a share, up from $67.5 million, or 39
cents a share, a year earlier. Sales jumped 12% to $2.35 billion as
same-store sales increased 7.8%.
Analysts surveyed by Thomson Reuters expected a profit of 46
cents on revenue of $2.37 billion.
Gross margin widened to 35.6% from 35.3%.
Whole Foods opened three stores, including one relocation, and
has relocated one store so far in the current quarter. The company
expects to open six additional new stores, including two
relocations, in the third quarter. Whole Foods currently operates
304 locations totaling about 11.5 million square feet.
The company also said it would change its trading symbol to WFM
from WFMI, effective Friday.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com
