US: Whole Foods FY profit up, cautious on 2010 sales

Whole Foods Market has posted an increase in full-year profit but said lower selling prices could negatively impact its sales going forward.

For period ended 27 September, net profit rose to US$146.8m compared to $114.5m in the previous year.

Sales for the 52-week period increased 1% to reach $8bn, while comparable store sales decreased 3.1% versus a 4.9% increase in the prior year. Identical store sales, excluding 12 relocations and three expansions, decreased 4.3% versus a 3.6% increase in the prior year.

Excluding the negative impact of foreign currency translation, comparable store sales decreased 2.6%, and identical store sales decreased 3.7%.

For the fiscal year, adjusted EBITDA increased 16% to $575.6m.

"We believe our sales have stabilised and officially turned the corner," said John Mackey, chairman, CEO, and co-founder of Whole Foods Market. "From where we stand today, we believe we are well positioned to meet our long-term debt maturities in 2012."

The company said it was pleased with its sales trends, however, it said food deflation could negatively impact sales going forward.

For the next year, Whole Foods said expects sales growth of 5% to 8%, comparable store sales growth of 1% to 4%, and identical store sales growth of 0% to 3%. The company expects to open 16 new stores, ten of which are expected to open in the first half of the year.

EBITDA is estimated in the range of $625m to $650m.

For the full press release click here, or check here for just-food's insight into Whole Foods' FY.