Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
The high end in the grocery chain world shows no sign of slowing – Whole Foods Market (WFM) just posted another solid quarter with a 5 cent beat on in line revenues, and upped EPS for the year. While a pricey stock, people continue to pay up for this rare type of growth.
Highlights:
$0.64 EPS v $0.59 expected, revenue inline at $2.67B. Same store sales 9.5%.
Guided up the year to $2.44-$2.47 vs $2.34 expected. Since 5 cents came from this quarter it is really a guide up from $2.39.
The stock is up to $87 in after hours, taking it over its yearly highs in the low $86 range. Full report here.
- Sales for the quarter increased 14% to $2.7 billion.
- Including a positive impact of 55 basis points from Easter shifting from the third quarter last year to the second quarter this year, comparable store sales increased 9.5% and identical store sales, excluding six relocations and two expansions, increased 9.0%.
- Earnings before interest, taxes, depreciation and amortization (“EBITDA”) increased 24% from the prior year to $259.2 million, net income increased 31% to $117.7 million, and diluted earnings per share increased 26% to $0.64.
- Gross profit increased 70 basis points to 36.3% of sales driven by almost equal improvements in occupancy costs and COGS as a percentage of sales.
