Los Angeles, Nov 5 - Upscale grocer Whole Foods Market Inc posted higher profit as sales "stabilized and officially turned the corner" but shares fell nearly 9 percent after its fiscal 2010 profit outlook missed analysts' views.
The Austin, Texas-based seller of local fare and pricey gourmet items said Wednesday that net income available to shareholders was $28.7 million, or 20 cents per share, for the fiscal fourth quarter ended Sept 27. That compared with net income of $1.5 million, or 1 cents per share, in the year-earlier quarter.
Analysts, on average, expected a profit of 18 cents a share, according to Thomson Reuters I/B/E/S.
Sales rose 2.3 percent to $1.83 billion, a touch lighter than analysts' call for sales of $1.84 billion.
For the first five weeks of fiscal 2010, Whole Foods' total sales were up 5 percent. Same-store sales increased 1.6 percent and identical store sales, which exclude remodels and relocations, rose 0.4 percent.
While sales trends are improving, the company said its efforts to compete on price could be a drag on earnings as a price war rages among the company and rivals like Wal-mart Stores Inc, Kroger Co , Safeway Inc and Supervalu Inc.
Sales comparisons will be easier in the first half of the year while expense comparisons will be difficult in the second half.
Whole Foods forecast 2010 sales growth of 5 percent to 8 percent, same-store sales growth of 1 percent to 4 percent and identical store sales that are flat to up 3 percent.
Earnings are expected to be $1.05 to $1.10 per share for 2010, below analysts' call for a per share profit of $1.11.
Whole Foods shares fell to $29.23 from their closing price of $32.06 on the Nasdaq.