Whole Foods’ 3rd-quarter profit nearly doubles as sales grow and key costs drop

Whole Foods 3Q profit up as costs dip, sales rise

AUSTIN, Texas — Whole Foods Market Inc. reported Tuesday that its third-quarter net income jumped as sales rose and costs fell for the natural and organic grocery chain.

Whole Foods said it earned $65.7 million, or 38 cents per share, for the quarter that ended July 4. That’s up 88 percent from the $35 million, or 25 cents per share, it earned a year earlier.

The results included $700,000 in costs for relocating and closing stores, including terminating leases. Whole Foods spent $18.2 million on those items last year.

Revenue grew 15 percent to $2.16 billion.

Analysts polled by Thomson Reuters expected the company to earn 38 cents per share on revenue of $2.14 billion.

The company said revenue at stores open at least a year rose 8.8 percent. This is considered a critical measure of a retailer’s performance as it strips away results from stores that open or close during the year.

Whole Foods raised its full-year outlook, saying it expects to earn $1.37 to $1.39 per share for the year, in line with analysts’ $1.37 expectations.

The company said it has secured several new store leases, with more pending, saying it expects to increase its new store openings in 2012.

But the company said it expects sales to temper in the fourth quarter due to the economy, competition and the fact that the company is beginning to lap some gains it made last year.

That news spooked some investors, who sent shares down $1.90, or 4.8 percent, to $37.62 in after-hours trading.