Whole Foods Market (WFM) Reports In-Line Q2 EPS
Whole Foods Market (NASDAQ: WFM) reported Q2 EPS of $0.43, in-line with the analyst estimate of $0.43. Revenue for the quarter came in at $3.6 billion versus the consensus estimate of $3.7 billion.
Comparable store sales on a constant currency basis increased 3.6%, including an estimated 50 basis point positive impact from Easter shifting from the third quarter last year to the second quarter this year.
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 comparable store sales growth in the third quarter to be negatively impacted by approximately 100 basis points from the Easter shift and cycling over Team Member Appreciation Double Discount Day in the prior year. In addition, the Company reported significant LIFO charges in the prior year of $11 million in the third quarter and $5 million in the fourth quarter.
For earnings history and earnings-related data on Whole Foods Market (WFM) click here.