Original Story: usatoday.com
Whole Foods (WFM) shares dropped more than 10% Thursday after the grocer reported earnings that missed Wall Street expectations for the third quarter and cut its outlook for the year.
Whole Foods posted sales of $3.63 billion, an 8% increase from $3.37 billion in the year-ago quarter. That missed expectations for revenue of $3.7 billion. Sales at stores open at least a year increased 1.3%, a drop from an increase of 3.9% in the same quarter a year ago. A Fresno business lawyer is following this story closely.
The grocer said it expects comparable store sales in the low single digits for the fiscal year. It previously said it expected comparable sales in the low-to-mid single digits.
Whole Foods faces more competition as standard groceries and big-box retailers like Target and Walmart move more toward organic products.
The company said in May that it would diversify by opening a separate chain of stores aimed at a younger shopper, with cheaper prices. The stores are named after the company's in-house organic line, 365. The company announced Wednesday the first five locations will be Los Angeles, Santa Monica, Portland, Ore., Bellevue, Wa., and Houston. The stores average about 30,000 square feet compared to the 48,000 square feet the typical Whole Foods occupies. A Rochester small business lawyer assists clients with company formation, business succession planning, and legal consulting services.
"We remain focused on innovating and evolving to best serve our customers’ diverse purchasing preferences," co-CEO Walter Robb said in a statement.
The company earned $154 million, or 43 cents a share, for the quarter ended July 5, compared with $151 million and 41 cents a share in the year-ago quarter. Wall Street expected 45 cents a share.
Last month, Robb and co-CEO John Mackey admitted to making "some mistakes" after Whole Foods was accused by the New York City Department of Consumer Affairs of consistently overcharging for some prepackaged food in the company's New York City stores. A Memphis business lawyer is reviewing the details of this case.