On May 9, Whole Foods Market
- Revenues increased 11.6% during the quarter as store square footage grew 12% and comparable-store sales rose 6%.
- The operating margin declined by 120 basis points, primarily because of higher health-care costs, workers' compensation costs, and preopening expenses as a percentage of sales.
- For fiscal 2007, the company expects total sales growth of 13% to 17% and comparable-store sales growth of 6% to 8%.
- Despite the recent setbacks, Whole Foods is three-star stock in Motley Fool CAPS, where competitors Safeway
(NYSE:SWY) and Kroger(NYSE:KR) carry two-star and three-star ratings, respectively. What do these rankings mean? Find out by joining CAPS today!
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$1,463.2 |
$1,311.5 |
11.6% |
|
Net Profit |
$46.0 |
$51.8 |
(11.2%) |
|
EPS |
$0.32 |
$0.36 |
(11.1%) |
|
Diluted Shares |
142.7 |
145.5 |
(1.9%) |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
35.2% |
35.3% |
(0.1) |
|
Operating Margin |
5.1% |
6.3% |
(1.2) |
|
Net Margin |
3.1% |
4.0% |
(0.9) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$94.3 |
$267.1 |
(64.7%) |
|
Accounts Rec. |
$90.4 |
$73.7 |
22.5% |
|
Inventory |
$237.3 |
$198.0 |
19.9% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$140.6 |
$116.5 |
20.7% |
|
Long-Term Debt |
$2.9 |
$9.5 |
(69.8%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$179.0 |
$216.6 |
(17.4%) |
|
Capital Expenditures |
$254.8 |
$123.5 |
106.3% |
|
Free Cash Flow |
($75.8) |
$93.1 |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
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