Shares of Whole Foods Market Inc. (WFM) gained more than 3 percent in extended trade on Wednesday after the organic-foods retailer reported a 31 percent increase in profit for the second quarter and raised its financial outlook for fiscal 2012. Earnings per share for the quarter topped analysts' expectations, while revenues matched their estimates.
John Mackey, co-founder and co-chief executive officer of Whole Foods Market said, "We are pleased to report another outstanding quarter, producing the best results in our company's thirty-two year history. Our consistent execution and strong capital disciplines have been delivering record returns to our shareholders."
On a same-store basis, sales grew 9.5 percent and includes a positive impact of 55 basis points from Easter shifting to the second quarter this year from the third quarter last year. Same store growth for the year-ago period was 7.8 percent.
Identical store sales, excluding six relocations and two expansions, increased 9.0 percent. This compares to identical store sales growth of 7.8 percent in the same period last year.
The Austin, Texas-based company's net earnings for the second quarter was $117.67 million or $0.64 per share, up from $89.94 million or $0.51 per share in the year-ago period.
On average, 22 analysts polled by Thomson Reuters expected earnings of $0.59 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter rose 14 percent to $2.67 billion from $2.35 billion in the same period last year. Analysts had a consensus estimate of $2.67 billion.
For fiscal 2012, Whole Foods raised its earnings outlook to a range of $2.44 to $2.47 per share from the prior range of $2.28 to $2.32 per share. Analysts currently expect the company to report earnings of $2.34 per share.
Whole Foods now expects sales growth for the year in a range of 14.8 to 15.6 percent, up from the prior range of 13.5 to 15 percent. Analysts have a consensus estimate of $11.63 billion.
The upscale grocery chain also raised its full-year outlook for same store growth to a range of 8.2 to 8.9 percent from the prior range of 7.3 to 8.8 percent.
The retailer still expects to open 24 to 27 stores in 2012.
WFM closed Wednesday's trading on the Nasdaq at $84.31, up $0.20 or 0.24 percent, on a volume of 2.34 million shares. In after hours, the stock further gained $3.24 or 3.84 percent to $87.55.
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