On May 3, Whole Foods Market (NASDAQ:WFMI) released Q2 FY 2006 earnings for the period ended April 9.

  • Revenue essentially hit the target, but earnings handily beat expectations, reversing a two-quarter trend highlighted here.
  • Gross margin varied slightly but has stayed in the same range the last five years.
  • Revenue growth is still on target to reach the $12 billion goal set for 2010.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q2 2006

Q2 2005

Change

Sales

$1,320

$1,312

$1,085

20.9%

Net Profit

--

$52

$41

27.3%

EPS

$0.35

$0.37

$0.31

19.4%



Get back to basics with a look at the income statement.

Margin Checkup

Q2 2006

Q2 2005

Change

Gross Margin

35.34%

35.71%

(0.37)

Op. Margin

6.28%

6.09%

0.18

Net Margin

3.95%

3.75%

0.20



Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q2 2006

Q2 2005

Change

Cash+ ST Invest.*

$267

$298

(10.3%)

Inventory

$198

$158

25.6%

Accounts Rec.

$74

$61

21%

*Does not include restricted cash.

Liabilities

Q2 2006

Q2 2005

Change

Long-Term Debt*

$15

$91

(83.1%)

Accounts Pay.

$117

$102

14.6%

* L/T debt includes current portion.

Learn the ways of the balance sheet.

Cash Flow Highlights

Q2 2006

Q2 2005

% Change

Cash From Ops

$128

$128

0.0%

Capital Expend.*

$54

$74

(27%)

Free Cash Flow

$73

$54

35.2%

* Includes new store development.

Find out why Fools always follow the money.

Related companies:

  • Wild Oats Market (NASDAQ:OATS)
  • Kroger (NYSE:KR)
  • Safeway (NYSE:SWY)
  • Albertsons (NYSE:ABS)

Related Foolishness:

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Fool contributor Jim Mueller had no position in any company mentioned. Fool rules are here.