Whole Foods Posts 11.9% Comps Growth in Q2; Raises '06 Guidance
AUSTIN, Texas -- Leading natural and organic foods retailer Whole Foods Market, Inc. here said yesterday its second-quarter sales jumped 21 percent to $1.3 billion, driven by 14 percent weighted average square footage growth and 11.9 percent comparable store sales growth. For the 12-week quarter ended April 9, sales in identical stores (excluding four relocated stores) increased 10.9 percent.
Net income increased 27 percent to $51.8 million.
"We are very pleased to report our tenth consecutive quarter of double-digit comparable store sales growth," said John Mackey, chairman, c.e.o., and co-founder of Whole Foods in a statement. "Based on our performance year to date, including our stronger-than-expected 12.5 percent comp results and new store sales, we are increasing our 2006 comp sales growth guidance to 10 percent to 12 percent and our sales growth guidance to the upper end of our 18 percent to 21 percent range."
Whole Foods' performance year to date includes sales of $3.0 billion, a 21 percent jump from the same period last year. Sales in identical stores (excluding four relocated stores) increased 11 percent. Net income increased 27 percent to $110.1 million.
In the second quarter, Whole Foods relocated one store in Alexandria, Va., opened two new stores in Woburn, Mass. and Henderson, Nev., completely re-opened its two New Orleans stores, and acquired one small store in Portland, Maine, which the company plans to relocate to a larger store currently in development, ending the quarter with 183 stores. The company has opened one new store in Greenville, S.C. in the third quarter and plans to open three to four additional stores during the fourth quarter.
Whole Foods also announced the recent signing of nine new store leases representing a total of approximately 520,000 square feet. These include: Tempe, Ariz. (53,000 s.f.); Burbank, Calif. (60,000 s.f.); Naperville, Ill. (60,000 s.f.); Dedham, Mass. (60,000 s.f.); Charlotte, N.C. (50,000 s.f.); Las Vegas, Nev. (50,000 s.f.); Tannasbourne, Ore., (54,000 s.f.); Houston (78,000 s.f.); and Sugarland, Texas (55,000 s.f.).
The company said it continues to believe it will produce earnings growth through sales growth rather than through significant operating margin leverage.
Whole Foods has 184 stores in the United States, Canada, and the United Kingdom.
Net income increased 27 percent to $51.8 million.
"We are very pleased to report our tenth consecutive quarter of double-digit comparable store sales growth," said John Mackey, chairman, c.e.o., and co-founder of Whole Foods in a statement. "Based on our performance year to date, including our stronger-than-expected 12.5 percent comp results and new store sales, we are increasing our 2006 comp sales growth guidance to 10 percent to 12 percent and our sales growth guidance to the upper end of our 18 percent to 21 percent range."
Whole Foods' performance year to date includes sales of $3.0 billion, a 21 percent jump from the same period last year. Sales in identical stores (excluding four relocated stores) increased 11 percent. Net income increased 27 percent to $110.1 million.
In the second quarter, Whole Foods relocated one store in Alexandria, Va., opened two new stores in Woburn, Mass. and Henderson, Nev., completely re-opened its two New Orleans stores, and acquired one small store in Portland, Maine, which the company plans to relocate to a larger store currently in development, ending the quarter with 183 stores. The company has opened one new store in Greenville, S.C. in the third quarter and plans to open three to four additional stores during the fourth quarter.
Whole Foods also announced the recent signing of nine new store leases representing a total of approximately 520,000 square feet. These include: Tempe, Ariz. (53,000 s.f.); Burbank, Calif. (60,000 s.f.); Naperville, Ill. (60,000 s.f.); Dedham, Mass. (60,000 s.f.); Charlotte, N.C. (50,000 s.f.); Las Vegas, Nev. (50,000 s.f.); Tannasbourne, Ore., (54,000 s.f.); Houston (78,000 s.f.); and Sugarland, Texas (55,000 s.f.).
The company said it continues to believe it will produce earnings growth through sales growth rather than through significant operating margin leverage.
Whole Foods has 184 stores in the United States, Canada, and the United Kingdom.