Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Whole Foods Announces 20% Dividend Increase on 16% EPS Growth

Capping off what its co-CEO called the best fiscal year in the company's history, Whole Foods Market (NASDAQ: WFM  ) announced a 20% dividend increase and a new buyback authorization today, during its Q4 and fiscal 2013 earnings report.

For the fourth quarter, which ended Sept. 29, sales rose 11% and diluted earnings per share grew to $0.32, a 16% gain. Comparable-store sales were up 5.9% over the same period last year. (Last year's fourth quarter had 13 weeks and this year's had 12, so all measurements are on a comparable 12-week basis.)

The company also said its gross profit increased by 37 basis points to 35.6%, largely because of lower cost of goods sold.

Sales for the total year were $12.9 billion, a 13% jump over fiscal 2012. Net income, representing 4.3% of total sales, came in at $551 million. EPS of $1.47 represented a 19% increase over 2012.

The dividend will rise from $0.10 to $0.12 per share, and the board of directors authorized $500 million in share repurchases, which stands in addition to the company's existing $300 million authorization.

"We reported record fourth-quarter operating results, which contributed to the best fiscal-year performance in our company's 35-year history," said co-founder and co-CEO John Mackey. "For the last four years, we have increased our new store openings while producing improvements in operating margin and higher returns on invested capital, and we expect these trends to continue in fiscal year 2014."

However, based on the first five weeks of Q1 2014, Whole Foods did lower its full-year guidance. Sales growth expectations were reined in from a range of 12%-14% to a ranger of 11%-13%, and the company also lowered its EPS guidance from a range of $1.69-$1.72 to a range of $1.65-$1.69.

Read/Post Comments (1) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2716184, ~/Articles/ArticleHandler.aspx, 9/30/2016 12:58:50 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 3 hours ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 4:00 PM
WFM $28.01 Down -0.28 -0.97%
Whole Foods Market CAPS Rating: ****