Shares in Whole Foods Market, the US organics retailer, dropped by more than 9% yesterday (13 May) as the company reported a fall in second-quarter earnings and sales.
Go deeper with GlobalData
The company, which has suffered amid the economic downturn, booked net income of US$35.3m for the three months to 12 April. The result compared to net income of US$40m a year earlier.
Sales were almost flat, dipping from US$1.87bn to US$1.86bn as Whole Foods saw identical-store sales fall 5.8%.
Nevertheless, chairman and CEO John Mackey insisted he was “pleased” with the numbers, pointing to a rise in underlying operating earnings.
“Despite flat sales year-over-year, we exhibited strong expense control leading to a 10% increase in income from operations excluding non-cash asset impairment charges,” Mackey said.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataExcluding those charges, income from operations increased 10% to US$82.7m.
Over the first six months of Whole Foods’ fiscal year, net income reached US$67.6m, against US$79.1m a year earlier. Net sales were flat at US$4.32bn. Identical-store sales fell 5.3%.
At the close of trading on the NASDAQ yesterday, Whole Foods shares stood at US$20, down almost 9.4%.
