Whole Foods shares fall as Q2 profit falls below expectations

Source: Food and Drink Digital

Date :14/05/2008 03:54:28

Whole Foods Market Inc., the largest U.S. natural-foods grocer, fell as much as 9.2 percent in late trading Tuesday after second-quarter profit dropped more than 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., the company said Wednesday.

The Austin, Texas-based retailer bought Wild Oats in August for $565 million.

Vulnerable

Whole Foods fell $2.79, or 8.2 percent to $30.85 at 7:10 p.m. in extended trading as the company said sales at stores open at least a year rose 6.7 percent in the quarter, slowing from 9.3 percent the previous quarter.

On a conference call with analysts, John Mackey, chief executive officer, said Whole Foods is “a little more vulnerable to an economic downturn than it was previously”.

Despite this, he said that the company is “still gaining market share at our competitor’s expense”.

Revenue jumped 27.6 percent to $1.9 billion, matching analyst estimates, Whole Foods said.

May 14, 2008