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Whole Foods Market, Inc. (WFM) Tops Q3 EPS by 2c; Comps Growth Lighter than Expected

July 30, 2014 4:04 PM EDT

Whole Foods Market, Inc. (NASDAQ: WFM) reported Q3 EPS of $0.41, $0.02 better than the analyst estimate of $0.39. Revenue for the quarter came in at $3.4 billion versus the consensus estimate of $3.39 billion.

Comparable store sales increased 3.9%, including a positive impact of approximately 60 basis points from Easter shifting from the second quarter last year to the third quarter this year, on top of a 7.5% increase in the prior year. The Street was looking for 4.8 percent growth.

Outlook for Fiscal Year 2014

The Company is reaffirming its diluted earnings per share outlook for fiscal year 2014 as shown in the following table. The Company notes the fourth quarter is seasonally its weakest quarter of the year in terms of average weekly sales and store contribution. In addition, store openings in the quarter will be back-end loaded. The Company's outlook does not include potential future share repurchases.

FY14 Prior OutlookFY14 Current OutlookQ3 YTD ActualQ4 Outlook
Sales growth10.5% - 11.0%9.6% - 9.9%10%8.5% - 9.5%
Comparable store sales growth5.0% - 5.5%4.1% - 4.4%4.6%2.5% - 3.5%
Two-year comps11.9% - 12.4%11.0% - 11.3%11.9%8.4% - 9.4%
Number of new and acquired stores36 - 39382513
% of sales from new and acquired stores6.0% - 6.5%6.2%6.1%6.7%
Ending square footage growth9% - 10%10%10%10%
LIFO charge--$20 - $22 mil$11 mil$9 - $11 mil
G&A expenses3.1%3.1%3.1%3.2%
Pre-opening and relocation costs$75 - $78 mil$75 - $77 mil$54 mil$21 - $23 mil
EBITDA$1.29 - $1.32 bil$1.29 - $1.30 bil$1.02 bil$270 - $284 mil
EBITDA margin9.0% - 9.2%9.1% - 9.2%9.3%8.4% - 8.7%
Operating margin6.5% - 6.6%6.4% - 6.5%6.7%5.6% - 5.9%
Operating margin excluding LIFO6.5% - 6.6%6.5% - 6.6%6.8%5.9% - 6.2%
Tax rate39.0%38.8% - 39.0%39.0%38.0% - 39.0%
Diluted EPS$1.52 - $1.56$1.52 - $1.54$1.21$0.31 - $0.33
EPS growth3% - 6%3% - 4%5%(4%) - 2%
Capital expenditures$675 - $725 mil$725 - $750 mil$566 mil$159 - $184 mil

For earnings history and earnings-related data on Whole Foods Market, Inc. (WFM) click here.



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