Whole Foods growth cool in third quarter, stock falls

Overall for its quarter, Whole Foods posted a profit of $154 million, or 43 cents a share, up from $151 million, or 41 cents a share, a year earlier.

During the third quarter, total sales increased eight percent to a record $3.6 billion.

The firm believes that the negative comps were due to an incremental 30 bps in cannibalization pressures and a 95 bps comp headwind from the Easter shift and the cycling of last year’s Member Appreciation Discount Day.

On an adjusted basis, comps improved 2.2%. (Whole Foods Market) is a retailer of natural and organic foods and grocer. These companies include The Kroger Co.

The numbers renewed concerns that Whole Foods is struggling to beat back an onslaught from mainstream grocers. Discounters, such as Wal-Mart Stores Inc. and Aldi Inc., are selling more organics. (WMT – Analyst Report).

This will be the company’s first store in Akron. “From the unique experience of our Whole Foods Market stores, to our growing online channel for home delivery, to the exciting launch of our 365 by Whole Foods Market stores, we are making investments to extend our reach to both new and existing customers”.

Investors looking for a quick trade can buy Whole Foods near $36, but for the most part, they should stay away, said Stephen Weiss, founder and managing partner of Short Hills Capital Partners LLC. The company shares have rallied 4.68% in the past 52 Weeks.

Whole Foods now operates 424 stores in the U.S., Canada, and the United Kingdom The company opened 8 new outlets during the reported quarter.

The company said in May that it would diversify by opening a separate chain of stores aimed at a younger shopper, with cheaper prices. It is completely a new format and it is considered that the new stores will not only provide convenience and value, but would also meet the quality standards and transparency that consumer expects and appreciates. The first store is slated to open doors in the Silver Lake area of Los Angeles.

Facebook’s second-quarter revenue barely squeaked past Wall Street’s outsized expectations, sending its high-flying stock down in after-hours trading.

The company also recently announced a quarterly dividend, which was issued on Tuesday, July 14th. The stock is still expensive, as earnings and same-store sales have declined. Management anticipates EBITDA margin of about 9% and ROIC of over 14%. The company provided earnings per share guidance of $0.34-0.35 for the period, compared to the Thomson Reuters consensus earnings per share estimate of $0.38, MarketBeat Ratings reports. Analysts estimated 45 cents on average, according to data compiled by Bloomberg.