Earnings

Whole Foods’ Profit Dipped And Same-Store Sales Slipped

Whole Foods has expanded its 365 network to Los Angeles with a new opening in the Silver Lake neighborhood.

Whole Foods Market managed to come out mostly ahead of analysts’ expectations as it offered its Q2 earning report — possibly one of the last few it will give before being folded into the Amazon family.

Earnings per share clocked in at 36 cents adjusted, beating out analyst expectations of 32 cents per adjusted share. Revenue was $3.73 billion — again ahead of the $3.72 billion Reuters analysts were calling for pre-release. Net income was down — $106 million (33 cents per share) from the $120 million reported a year ago (37 cents per share).

Also taking a hit in the last quarter were same-store sales — though the hit was less dramatic than was forecast. Analysts expected comparable sales to drop 2.2 percent, though the actual decline was 1.9 percent.

“Our comparable store sales improved sequentially on a one- and two-year basis in the third quarter, and that momentum has accelerated 220 basis points in the fourth quarter, resulting in positive overall comps for the first three weeks,” John Mackey, co-founder and CEO, said in a statement Wednesday.

That statement was all the investing world got to hear from Mackey on Whole Foods results — the grocery chain did not have a call with analysts.  Whole Foods has been the center of attention this summer in the wake of an announcement that Amazon will be purchasing the chain for $42 a share, in a deal valued at $13.7 billion. According to both firms, the deal will likely close during the second half of 2017. With that closing, Amazon will get Whole Foods’ network of physical stores. Mackey will remain CEO of the grocery store chain, and it will continue to operate under the Whole Foods brand name.

“This partnership presents an opportunity to maximize value for Whole Foods Market’s shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience and innovation to our customers,” Mackey said of the deal last month.

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