Seeking Alpha

Comp sales and guidance disappoints at Whole Foods Market

  • Whole Foods Market (WFM) reports comparable store sales increased 4.5% in FQ2 to miss the estimate of analysts.
  • The company cited a negative impact of 50 bp from the shift of Easter into FQ3.
  • Gross profit as a percentage of sales fell 50 bps Y/Y to 36.4%
  • WFM -10.3% AH
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Comments (10)
  • Bbloomlu
    , contributor
    Comments (247) | Send Message
     
    Ouch really hurts to be a WFM investor even if it's good to be a customer
    6 May, 04:41 PM Reply Like
  • bbro
    , contributor
    Comments (9852) | Send Message
     
    Still expensive for the stock...
    7 May, 08:27 AM Reply Like
  • Zenith Strategies
    , contributor
    Comments (459) | Send Message
     
    While I enjoy a trip to this store as a treat once in a while, it is expensive from both a customer and investors point of view. The industry for natural and organic is expensive and they are really beating each other up. Also, it does not take much for a traditional grocer to offer some of this stuff and sell for much less a multiple.
    7 May, 08:44 AM Reply Like
  • chopchop0
    , contributor
    Comments (3538) | Send Message
     
    Yup. Organics are "commoditizing" like smartphones and tablets once did
    7 May, 08:54 AM Reply Like
  • johnproto
    , contributor
    Comments (27) | Send Message
     
    Right. Even Walmart and Target are talking about getting into the game.....does not bode well for WF.
    7 May, 10:12 AM Reply Like
  • Windsun33
    , contributor
    Comments (4277) | Send Message
     
    Agreed. I used to pick up a few specialty items there, but it is a long drive and I can get nearly all of what I used to buy there online - usually much cheaper.
    7 May, 12:04 PM Reply Like
  • bbro
    , contributor
    Comments (9852) | Send Message
     
    Kroger has 98 billion in sales and a 24 billion market cap,,,Whole Foods has 13.5 billion in sales and (as of this morning) a 15 billion market cap...
    7 May, 08:58 AM Reply Like
  • rjj1960
    , contributor
    Comments (1370) | Send Message
     
    Just an overpriced supermarket.
    7 May, 10:07 AM Reply Like
  • TimeOnTarget
    , contributor
    Comments (2826) | Send Message
     
    Seems to me that most of the commenters are missing the freight train that is coming. Yes, organic foods are more widely available. No, WFM is not just an overpriced supermarket.

     

    Although WFM needs to expedite execution on its commitment to not carrying anything packed in polycarbonate (the primary source of bisphenol A) and eliminating GMOs, it is still substantially ahead, and I mean substantially ahead, of where other supermarkets are, even where I live, which is far ahead of most places in the selection and quality of organic offerings in supermarkets. As far as I can tell, despite moving too slowly for my taste, WFM will be at full speed on addressing exposure to endocrine disrupting chemicals (EDCs) and GMOs while its potential competitors won't even be at the track for the race.

     

    With the advent and huge advances in epigenetics, it is a whole new world now in evaluating the effects and mechanisms of actions of chemicals in human beings. Watch the outrage that is going to occur with regard to EDCs when people find out that not only has their own health been compromised by exposure to EDCs like BPA (which may well be a cause of polycystic ovary syndrome, metabolic syndrome, etc.), but also that they are going to be passing on those deleterious effects to their children and grandchildren.

     

    See, e.g., http://bit.ly/RrMZiC

     

    http://1.usa.gov/RrMZyQ

     

    http://1.usa.gov/RrN0Tw (This link has a link that will take you to a free copy of the full study that is discussed in the link above.)

     

    People aren't going to want to believe there is a problem, but take it from someone old enough to remember how people looked in the early 1970s compared to how they look today, there is a big difference. BPA has a lot of stuff that is going to be coming its way: sperm counts, PCOS, diabetes, etc. It will take a while to coalesce, but when it does "outrage" may not be a strong enough word to describe the reaction.
    7 May, 01:04 PM Reply Like
  • 1GreatCFA
    , contributor
    Comments (1049) | Send Message
     
    All I got out of this is look out below...stock could crack the teens based on a quick comp analysis. Sorry...wouldn't touch this with a 10 foot pole.
    7 May, 02:10 PM Reply Like
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