Comp sales decelerate at Whole Foods Market


Whole Food Market (NASDAQ:WFM) reports comparable-store sales rose 3.9% in FQ3 vs. 4.7% consensus. The mark extends a streak of decelerating comp growth (4.5% in FQ2, 5.4% in FQ1, 5.9% in FQ4) and looks even worse in light of the shift of Easter into the quarter.

Transactions were up 2% in FQ3, while the average basket was 1.9% higher.

Average weekly sales per store were $736K.

The company announces a new $1B buyback program.

FY14 guidance: Comp sales 9.6%-9.9%; store count +38; EBITDA margin 9.1%-9.2%; EPS $1.52-$1.54

WFM -4.8% AH

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Comments (18)
  • U2A Ventures
    , contributor
    Comments (335) | Send Message
     
    seems to just be getting too cheap... i am smelling a major buying potential
    30 Jul 2014, 05:39 PM Reply Like
  • Sittingcrow
    , contributor
    Comments (107) | Send Message
     
    Listen, listen closely. That Wackey CEO is expanding when should be contracting. Down here in Austin we all know it's a matter of time until the Whole House of Food Cards comes a tumblin' down. And it happnin all over, better organic at better prices from better people.
    30 Jul 2014, 10:15 PM Reply Like
  • Brian Sanders
    , contributor
    Comments (1394) | Send Message
     
    traffic is very high at WFMs. However the decline in comps is concerning.
    the company is getting cheap, but isn't cheap enough imo.
    30 Jul 2014, 11:50 PM Reply Like
  • ajzaddac
    , contributor
    Comments (31) | Send Message
     
    To be clear, comps aren't declining. The rate at which they're increasing is declining. They're still up by 3.9%.
    31 Jul 2014, 12:31 AM Reply Like
  • Brian Sanders
    , contributor
    Comments (1394) | Send Message
     
    well given that people actually read the news piece at the top, they would see the word deceleration.
    31 Jul 2014, 05:42 PM Reply Like
  • Magus123
    , contributor
    Comments (61) | Send Message
     
    Too cheap? Still trading at ~23x next year's earnings, well above the S&P average. WFM is a great company but the entire sector is probably still a bit overvalued, especially with earnings slowing down (except SFM--so far)
    30 Jul 2014, 05:43 PM Reply Like
  • ReligiousWacko
    , contributor
    Comments (1838) | Send Message
     
    agreed. solid company but increasing competition. fair price is at best low 30s. I would buy mid-high 20s/
    30 Jul 2014, 08:10 PM Reply Like
  • rjj1960
    , contributor
    Comments (1471) | Send Message
     
    $ 8.00 bananas will do it every time.
    30 Jul 2014, 07:10 PM Reply Like
  • Hbeyer
    , contributor
    Comments (6) | Send Message
     
    Could flirt with $32 in the next week.
    30 Jul 2014, 07:23 PM Reply Like
  • C.N
    , contributor
    Comments (261) | Send Message
     
    Miss after miss after miss, still can't figure it out???? Buybacks with a big window, seems like more trimmings on the way.
    30 Jul 2014, 07:50 PM Reply Like
  • C.N
    , contributor
    Comments (261) | Send Message
     
    Organic should cost less than non organic, since they are using no pesticide???
    30 Jul 2014, 07:53 PM Reply Like
  • sid18
    , contributor
    Comments (380) | Send Message
     
    LOL...that's not the only difference.... see http://fxn.ws/1n4v2Pk
    30 Jul 2014, 07:56 PM Reply Like
  • runiter
    , contributor
    Comments (292) | Send Message
     
    Thanks for the link. Very informative.
    31 Jul 2014, 01:54 PM Reply Like
  • Deja Vu
    , contributor
    Comments (1805) | Send Message
     
    Whole Foods is whole wheat toast with overpriced aragula on it.

     

    Kroger and other chains now have huge selections of organic garbage at lower prices.
    30 Jul 2014, 07:55 PM Reply Like
  • C.N
    , contributor
    Comments (261) | Send Message
     
    Only 1 % have gluten allergy but whole 100% wfm shoppers buy gluten free products , then they beat you down with gluten free talk.
    30 Jul 2014, 08:09 PM Reply Like
  • convoluted
    , contributor
    Comments (2411) | Send Message
     
    Didn't know it was down AH-until I read this. My short calls were looking ugly (still are on my screen). Looks like red will turn to green in the morning.
    I have been short in-the-money calls as I couldn't understand how in the hell this stock was flying thru interstellar space.
    30 Jul 2014, 09:51 PM Reply Like
  • BTinSF
    , contributor
    Comments (310) | Send Message
     
    I'm looking at CNBC 2 hrs after the close and the ticker says it's UP.
    30 Jul 2014, 11:47 PM Reply Like
  • _kevinjm
    , contributor
    Comments (52) | Send Message
     
    Marketing campaign, renovations and expansions make this a buy if you're in for the long term.
    31 Jul 2014, 12:42 AM Reply Like
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