The economic recovery may be on an uneven track, but consumers are still willing to spend money – at Whole Foods Market especially.
The nation’s leading purveyor of healthy foods surprised analysts, again, late Wednesday when it powered through their estimates and the company’s own guidance. Same-store sales increased 8.2%, total sales increased 14% to $2.7 billion, net income increased 32% to $117 million and earnings per share that rose 27% to 63 cents were two cents better than analysts forecast. It was the fifth consecutive quarter in which same-store sales exceeded 8%, and the 16th consecutive quarter in which he company’s earnings have exceeded analysts’ consensus estimate.
“In an economic environment that is proving to be difficult for many retailers, we are thriving and pleased to report another quarter of strong growth and excellent results for our stakeholders,” said Walter Robb, co-CEO of Whole Foods. “Our accelerated growth plans are on track, and we believe we will continue to gain market share through further differentiating our shopping experience, improving our relative value positioning, and reinforcing our position as America's healthiest grocery store.”
Based on its third quarter strength and comps that are up 9.7% during the first three weeks of the company’s fourth quarter, Whole Foods increased its full year earnings per share forecast by five to seven cents to a range of $2.51 to $2.52. The company also went so far as to forecast earnings and same-store sales for the coming fiscal year, despite uncertainty around food and commodity costs in the wake of a severe drought in the Midwest and energy prices which could prove volatile in 2013. Nevertheless, Whole Foods said it expects earnings for its new fiscal year beginning in November to range from $2.83 to $2.87 and comps to increase from 6.5% to 8.5%.
Whole Foods also plan to increase new store openings with between 28 and 32 stores in the works. The company ended the third quarter with a total of 329 stores in the United States, Canada and the United Kingdom. A record nine new locations opened during the quarter with six more planned for the fourth quarter it will bring the number of openings for the full year to 25.
“Over the long term, the company considers 1,000 stores to be a reasonable indication of its market opportunity in the United States as the Whole Foods Market brand continues to strengthe