Whole Foods (NASDAQ:WFM) Quarterly Profits Exceed Expectations
An over view of the quarterly profits declared by the Whole Foods (NASDAQ:WFM) in its report show that the company’s profits exceeded the expectations. On Thursday, the shares were up 11% to $44.34. Wall Street exclaimed that the company was still reasonably popular amongst customers. The natural food grocers is still standing tall after decades of being in business, and is fully aware of the growing competition that it is facing. The Whole Foods (NASDAQ:WFM) has been facing a lot of pressure from competitors and it was felt more when analysts asked the co-CEO John Mackey and Walter Robb if they had heard about Kroger (NYSE:KR) and Sprout (NASDAQ:SFM); competitor brands for the company.
However, the quarterly profits show that Whole Foods (NASDAQ:WFM) are the leaders. A fiscal 4th quarter was seen in which the company earned 35 cents per share, exceeding estimates, on sales of $3.26 billion. This figure shows that the company has hope for its future shares, even after seeing a decrease in its growth in 2014 for four continuous quarters, as well as a 30% decline in stock shares since 31st December.
According to the company, the sales growth will exceed 9% as compared to the in store sales which will be either in lower single digits or middle single digits, in fiscal 2015.
However, there are a couple of things that need to be looked at. Firstly this expectation of future sales provided by the company, contradicts the vision the company had provided last May. Whole Foods (NASDAQ:WFM) had said that it is seeing $16 billion sales this year, which will be going up to $24 billion in 2018. However, sales in 2014 fiscal year, as reported on Wednesday, were $14.2 billion. According to this vision, the same-store sales would go up to 6%, with earnings of $1.74 per share, which is 11.5% earnings per share increase from 2014. In order to reach the $16 billion in sales this year, the company’s growth will have to be 12.8%.
The future plans of the company are commendable, and deserve to be appreciated for showing the investors where they see the company in the future. Whole Foods (NASDAQ:WFM) say that with the new fiscal year starting, the company is taking a chance to shift its conversations with the investment party. The company is keeping its focus on a broader directional point of view and metrics, which they consider to be the source to the long-term benefit for the company. Furthermore the company is also not planning to issue quarterly updates regarding their yearly targets.
These new policies will affect the transparency of the company, which is a shame since the company is known for its transparency policy. However, Whole (NASDAQ:WFM) have earned its name for the quality of its products and has established long lasting customer loyalty. Based on the reputation that Whole Foods (NASDAQ:WFM) enjoys, and will continue to do so in future, it will remain the market leader, regardless of its dwindling annual sales.