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.
The report provides a review of the latest news and key events in the global bakery & cereals market during September 2014....
US group Nutroganics has struck a deal to buy soy yoghurt firm Wholesoy & Co....
Synopsis The report provides a review of the latest news and key events in the global bakery & cereals market during July 2014. Summary Using this report, marketers will effectively gain an insight i...
- Challenges for General Mills with The Good Table
- What US companies might Nomad Foods buy?
- Greek crisis - The impact on shopper behaviour
- Competition intensifies among UK burger chains
- Why investors are concerned about water risk
- Mitsubishi buys stake in Olam International
- Unilever claims victory in Becel dispute
- KitKat to go sustainably sourced cocoa only
- Arla strikes JVs in Nigeria and Senegal
- Arla H1 profits down on milk price slump
- Management briefing: just-food’s industry outlook for 2015
- Food Flavourings & Colourings (UK) - Industry Report
- Biscuit Manufacturers (UK) - Industry Report
- Bakery Market in Japan: Forecast, and Market Analysis 2015-2019
- The Coca-Cola Company : Consumer Packaged Goods - Company Profile, SWOT & Financial Analysis