Whole Foods Market has sluggish Q3, but beats analyst expectations

Despite a drop in profits and same-store sales, Whole Foods Market still managed to surpass analyst predictions for the third quarter.



Net income for the quarter, ended July 2, net income fell to $106 million, or 33 cents per shares, from $120 million, or 37 cents a share, a year ago. This beat analyst expectations of 33 cents expected, according to Thomson Reuters.



Total sales increased 0.6% to a “record” total of $3.7 billion, the retailer said. This also beat analyst predictions of $3.72 billion, according to Thomson Reuters.



Comparable store sales decreased 1.9%, which “improved sequentially on a one- and two-year basis in the third quarter,” said John Mackey, co-founder and CEO of Whole Foods Market. “And that momentum has accelerated 220 basis points in the fourth quarter, resulting in positive overall comps for the first three weeks.”



In the third quarter, the company opened six stores, including one relocation. In the fourth quarter, the company has already opened two stores, and expects to open two additional Whole Foods Market stores and two Whole Foods Market 365 stores, including one relocation.



He added, “For the [third] quarter, we delivered record sales and free cash flow, and returned $44 million in dividends to our shareholders.”



On June 16, Amazon.com announced it will acquire Whole Foods Market for $42 per share in an all-cash transaction valued at approximately $13.7 billion, including Whole Foods Market’s net debt. The parties expect to close the transaction during the second half of 2017. http://www.chainstoreage.com/article/amazon-buying-whole-foods-market



The company will not be updating its outlook for fiscal 2017 or longer-term targets. The natural foods grocer also will not hold a conference call to discuss financial results for the third quarter.