Whole Foods Market Inc. Q1 Net Up 10%: Sees Narrowing Margin

Whole Foods Market Inc.

posted a 10 percent increase in first-quarter sales and profits, but warned of a narrowing gross margin in fiscal 2015. The Austin, Texas-based premium grocer changed hands recently in the extended session at $54.75, up more than 2 percent. The company forecast fiscal 2015 sales growth of 9 percent, with earnings growing at the same or a slightly higher rate. But Whole Foods predicted its gross margin will narrow to a greater extent than in 2014, while the company makes additional investments in technology, marketing, and new stores. Same-store sales in the first quarter ended Jan. 18 grew 4.5 percent, up from 3.1 percent in the fourth quarter. In the current period through Feb. 8, same-store sales increased 4.9 percent. Net earnings for the second quarter grew 10 percent to $167 million, or $0.46 cents a share, from $158 million, or $0.42 cents a share a year earlier. Revenue grew, also by 10 percent, to $4.67 billion, from $4.24 billion a year earlier. Wall Street expected earnings of $0.47 cents a share, on revenue of $4.67 billion.