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

[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

[napi21]

1. Too many people can't aford to shop there anymore.

I heard a report yesterday that many people were switching to Aldi's, Save-A-Lot etc. because fuel, and food prices have hit them too hard.

My hubby is a meat cutter at a large food chain in the SE. THEIR business has been off a lot in the last month or 2, and it's seems to be getting worse. The only thing that's selling is chicken, the cheapest hamburger, and sometimes the sale of the week items if the sales are good ones.

[marmar]

3. I really like Whole Check Market, as we (half) jokingly call Whole Foods, but....

.... it's a no-go zone lately. I only go in there for their Allegro coffee, which I love, and compared to the rest of the merch in the store, is relatively moderate in cost.
Other than that.....it's clipping coupons and off to Meijer for me!

[Warpy]

6. I still go maybe once every couple of months

for the stuff that neither the food co op nor Sunflower Market stocks. I do love some of their prepared foods, but Sunflower's stuff is starting to edge those out for me. All 3 places are less than a 10 minute drive from my front door. There's an international grocery 10 minutes in the other direction.

I live in the city, so I have access to everything, even though Trader Joe's was dumb enough to locate out on the outskirts, about 15 miles from me. I get there maybe twice a year.

[depakid]

2. Maybe if whole paycheck didn't ream you for every single item in the store

They wouldn't be seeing slowing sales.

[CountAllVotes]

4. there is the equivalent of a Whole Foods close by

the prices are very high. If you join it as a "member" you get a 10% discount once a month (which happens to be tomorrow - Wednesday, the day the baker's don't bake fresh bread of course).

I went there around Xmas time and they had a "free range" turkey for sale - the price was just over $100.00. :wow:

Recent added inflation and the recent jumps in prices of whole grains, etc. makes health food stores even more expensive.

[depakid]

5. It's not just the health food items

It's EVERY item that they sell. You can go right down the street to any of the other markets or to Trader Joes and get the very same item for 30% less.

[latebloomer]

7. yup

Just the other day I noticed that the box of "brownie bites" i'd bought in another pricey store was a full dollar more at Whole Foods.

Several years ago I bought 3 shares of WF stock so I wouldn't feel so ripped off by them. Glad I didn't buy more!