Whole Foods Net Income Jumps 22% in 2Q

Austin, Texas, Whole Foods Market’s sales increased 20% to $1.1 billion for its second quarter, ended April 10, 2005, driven by same-store sales growth of 11.6% and 13% weighted average year-over-year square footage growth. Net income increased 22% to $42 million, and diluted earnings per share increased 17% to 61?.

“We are very pleased with our performance year to date, particularly in light of our difficult year-to-year comparisons,” said John Mackey, chairman and CEO, Whole Foods Market. “Due to our strong sales growth, we are raising our comparable-store sales guidance for the year to a range of 9% to 11% from 8% to 10%.”

Whole Foods opened two stores in the quarter, in Swampscott, Mass., and New York City, ending the period with 168 stores. The company today opened its third store in Canada and expects to open two additional stores during the third quarter, including one relocation. Currently, Whole Foods has 59 stores in its development pipeline, up 28% from a year ago.

The company also announced that based on new determinations by the Securities and Exchange Commission, it will return to and continue its previous practice of capitalizing rent during the construction period.