US: Whole Foods lowers FY earnings forecast range
Whole Foods has invested in price amid cautious consumer environment
Whole Foods Market has brought down its forecast range for annual earnings, hitting shares in the US natural and organic retailer today (13 February).
The retailer expects diluted earnings per share of $1.58-1.65 for the year to 28 September, compared to its previous forecast of $1.65-1.69.
Whole Foods also changed its sales forecast. It said it sees annual sales up 11-12%. The retailer had previously estimated an 11-13% increase in sales.
The grocer, which has 373 stores in the US, Canada and the UK, also lowered the top end of its forecast range for comparable-store sales, which stands at a rise of 5.5-6.2%, compared to 5.5-7%.
"The lower end of the company's sales and earnings guidance reflects a year-over-year decrease in gross margin for the remainder of the year, while the high end assumes gross margin is relatively flat, reflecting the company's ongoing value strategy and a tough 36.2% year-ago comparison," Whole Foods said.
BB&T Capital Markets analyst Andrew Wolf said Whole Foods had had to invest in price more than he expected.
"We continue to forecast modestly improved same-store sales trends for Q2'14-Q4'14. But clearly we did not anticipate the degree of gross margin investment in Q1'14; we have therefore lowered our EPS estimates and price target accordingly," Wolf said.
Shares in Whole Foods were down 7.59% at $51.24 at 11:32 ET.
Click here for the full release from Whole Foods.
Whole Foods Market has a strong emphasis on perishable foods, designed to appeal to natural and organic food shoppers. It aspires to become an international brand synonymous with natural and organic f...
Whole Foods Market, Inc. - SWOT Analysis company profile is the essential source for top-level company data and information. Whole Foods Market, Inc. - SWOT Analysis examines the company’s key busi......
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
Canadean's "Whole Foods Market, Inc. : Retailing - Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile contains a company...
TechNavio's analysts forecast the Global Organic Food and Drink market to grow at a CAGR of 14.3 percent CAGR over the period 2012-2016. One of the key factors contributing to this market growth is th...
Natural food is a category of food that is minimally processed and is free of synthetic preservatives. It does not contain genetically modified organisms, high fructose corn syrup or artificial sweete...
Health and wellness food products can be defined as foods and beverages that are specially formulated and distinctively marketed to provide a distinct health or functional benefit to the consumers. Th...
The smartest people know that studying the failures of others teaches us how to succeed. This is the 3rd edition of our massively popular and unique Failures report. A fully-updated analysis, featuri...
- Focus: The impact of Heinz's stevia ketchup
- Focus: Gen Mills turns to M&A to bolster US ops
- Viewpoint: US health food in play - at a price
- Comment: Kingsmill "youth" appeal bodes well
- BRICs: How dairy deal bolsters Lactalis and BRF
- Glanbia to buy US sports nutrition firm Isopure
- Burton's "eyeing" United Biscuits merger
- Arla joins race for Egypt's Arab Dairy
- Premier Foods revamp creates three divisions
- Mondelez pauses production at Cadbury Oz site