Los Angeles, 6 Nov - Private equity firm Green Equity Investors V L.P. has bought a 17 percent stake in Whole Foods Market Inc for $425 million, sending the high-end grocery chain's shares up nearly 22 percent.
Whole Foods -- a former Wall Street darling, which thrived prior to the economic crisis by selling organic, natural and gourmet food at premium prices -- has been hit as consumers trade down to lower-priced stores.
The Austin, Texas-based company posted fiscal fourth- quarter net income of $1.5 million, or 1 cent per diluted share Wednesday, including 12 cents in total charges related to idle Wild Oats properties; a tax charge; asset impairments and 13 lease terminations of Whole Foods stores in development.
Analysts, on average, were looking for adjusted earnings of 13 cent per share.
It reported net income of $33.9 million, or 24 cents per share, in the year-earlier quarter ended Sept. 30.
Whole Foods bought rival Wild Oats Markets for $565 million last year and the chain had already cut expansion plans and halted its dividend this year.
Sales, including those from divested stores, rose to $1.79 billion from $1.74 billion, but gross profit also declined.
Comparable store sales rose 0.4 percent percent and identical store sales, eight relocated stores and two major expansions, fell 0.5 percent. Those figures are used to gauge health at grocery stores.
The company's shares rose to $12.54 in extended trading from their $10.31 close on Nasdaq. One year ago, the shares were trading at $51.06.
Green Equity Investors V L.P is an affiliate of Leonard Green Partners L.P.