Saturday, July 28, 2012

Whole Foods Jumps after Lifting Guidance

Whole Foods Market (WFM) beat third quarter earnings expectations and raised its 2012 guidance, sending shares about 9% higher after-hours.

Whole Foods posted 63 cents of EPS, 2 cents ahead of expectations.� It raised its 2012 EPS guidance to $2.51-$2.52 from $2.44-$2.47. Comparable store sales decelerated somewhat, showing 8.2% growth versus 9.5% in the second quarter. The results were hurt by a shift in the Easter holiday.

More traditional supermarkets like Supervalu (SVU) have struggled in recent months as shoppers have become more frugal and companies have gotten more competitive on price. But Whole Foods is clearly persevering.

“In an economic environment that is proving to be difficult for many retailers, we are thriving and pleased to report another quarter of strong growth and excellent results for our stakeholders,” said Walter Robb, co-chief executive officer. “Our accelerated growth plans are on track, and we believe we will continue to gain market share through further differentiating our shopping experience, improving our relative value positioning, and reinforcing our position as America’s healthiest grocery store.”

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