Whole Foods Shares Fall on Second-Quarter Profit, Slowing Sales [View All]

[marmar]

from Bloomberg:





Whole Foods Shares Fall on Second-Quarter Profit, Slowing Sales

By Beth Jinks

May 13 (Bloomberg) -- Whole Foods Market Inc., the largest U.S. natural-foods grocer, fell as much as 9.1 percent in late New York trading after second-quarter profit dropped more than analysts estimated and sales growth slowed.

Net income decreased 13 percent to $40 million, or 29 cents a share, in the three months ended April 13, from $46 million, or 32 cents, a year earlier, on expenses related to its acquisition of Wild Oats Markets Inc. Whole Foods said today.

Sales at stores open at least a year rose 6.7 percent in the quarter, decelerating from 9.3 percent the previous quarter. The Austin, Texas-based retailer acquired Wild Oats in August for $565 million to compete against Safeway Inc. and Trader Joe's Co. as consumers, hurt by higher gas and food prices and the worst U.S. housing market in a quarter century, rein in spending.

``Comparable-store sales' growth are decelerating,'' Stephanie Hoff, an analyst with Edward Jones & Co. in St. Louis, said in a phone interview today. ``We're starting to see pressure for upper-income consumers, the gas prices have finally reached a level where people are taking notice of what they're spending.''

Sales rose 28 percent to $1.87 billion, missing the $1.89 billion average estimate of 12 analysts surveyed by Bloomberg. ....(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=ahVJ7bXFEtFU&refer=home