Acquisition Hurt Whole Foods’ 2Q Profit
Austin, Texas Whole Foods Market Inc. said Tuesday that sales surged in the second quarter but absorbing the Wild Oats chain it bought last year caused profit to sag by 13%.
The company said net income in the quarter ended April 13 fell to $40 million, from $46 million a year earlier. The grocer said last year's acquisition of Wild Oats Markets Inc. cost $8.6 million in the quarter.
Revenue rose 28% to $1.87 billion, but fell short of analysts' forecast of $1.89 billion.
Whole Foods repeated its forecast that sales will increase 25% to 30% in the current fiscal year, which ends in September, and same-store sales will rise 7.5% to 9.5%.
Through the first six months of its fiscal year, the company earned $79.1 million, compared with $99.74 million a year earlier. Sales gained 29.7% to $4.32 billion, and same-store sales increased 8.2%.
Whole Foods operates about 270 stores and has 89 locations in development.