Whole Foods Misses On Earnings And Revenue

Whole Foods Market (WFM - Analyst Report) is a grocery retail chain that leads the industry in providing natural and organic foods. Based in Austin, Texas, Whole Foods stores area combination of a local farmer’s market and a neighborhood supermarket. The company appeals to a growing market of health conscious consumers who are becoming more concerned about the quality and production of their food.

WFM achieved success for years because it was really the only option in the health food market. Growing competition has recently forced Whole Foods to reconsider its aggressive pricing, which has become a major area of investor concern. In response, the company announced plans to begin opening new “365” concept stores, which are smaller, more streamlined, and more affordable versions of the usual storefront.

WFM’s third quarter earnings will also be the first following a fine by the Department of Consumer Affairs in New York City. The DCA accused Whole Foods of overcharging customers for prepackaged food, claiming that the company routinely neglected to properly weigh out these goods. Although the fine was minuscule, Whole Foods will have a chance to address consumer sentiment in response to the incident.

Currently, Whole Foods holds a Zacks Rank #4 (Sell). We have highlighted some of the key stats from the released report below:

Earnings: WFM posted a quarterly EPS of $0.43, just missing the Zacks Consensus Estimate of $0.45.

Revenue: Whole Foods announced Q3 revenues of $3.63 billion, falling short of our consensus estimate of $3.69 billion.

Key Stats to Note: The company affirmed its guidance for the remainder of the year, expecting sales growth of 9% in 2015.

Stock Price: Shares of WFM were basically flat all day, but the stock crashed in after-hours trading over 10%.