Whole Foods Market (WFM) Tops Q1 EPS by 1c

Whole Foods Market (NASDAQ: WFM) reported Q1 EPS of $0.46, $0.01 better than the analyst estimate of $0.45. Revenue for the quarter came in at $4.7 billion versus the consensus estimate of $4.67 billion.

Comparable store sales growth of 4.5%

Fiscal Year 2015 Targets

The Company's targets for fiscal year 2015 are:

• Sales growth over 9%
• Comparable store sales growth in the low to middle single digits
• Square footage growth of 9% to 10% based on 38 to 42 new stores, including five to six relocations
• EBITDA margin of approximately 9%
• ROIC greater than 14%

The Company expects to continue its value strategy and make additional investments in areas such as technology, marketing, and new and existing stores. The Company believes this is the right strategy to drive sales growth over the longer term. Reflecting its ongoing value efforts, the Company expects a greater decline in gross margin, excluding LIFO, in fiscal year 2015 than in fiscal year 2014. The Company expects to maintain expense discipline and improve its cost structure, with the biggest opportunities coming from internal distribution, coordinated purchasing and labor leverage. While quarterly results may fluctuate, the Company expects diluted earnings per share growth for the fiscal year to be in line with or slightly higher than sales growth.

The Company expects store openings to be spread fairly evenly throughout the rest of the fiscal year. For the six remaining former Dominick's locations in Chicago, two are expected to open in each of the second, third and fourth quarters. The Company also notes that Easter will fall in the second quarter of fiscal year 2015 versus the third quarter of fiscal year 2014, positively impacting comparable store sales growth in the second quarter and negatively impacting comparable store sales growth in the third quarter by an estimated 50 to 60 basis points.

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

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