On Nov. 3, Whole Foods Market (NASDAQ:WFMI) released fourth-quarter earnings for the period ended Sept. 24.

  • Revenues rose by 15.8% to $1.29 billion, led by an 8.6% increase in comparable-store sales. The operating margin expanded because of lower sales, general, and administrative costs as a percentage of sales and a decrease in store pre-opening expenses.

  • Decline in cash and cash equivalent reflected cash dividends of $21 million paid to shareholders and a repurchase of 2 million of shares worth $100 million.

  • Free cash flow improved by 30% on account of increased cash from operation, partially offset by an increase in capital expenditure.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$1,291

$1,115

15.8%

Net Profit

$39.8

$9.1

339.3%

EPS

$0.28

$0.06

366.7%

Diluted Shares

143.5

142.1

1%



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

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

34.8%

35%

(0.2)

Operating Margin

4.8%

1.9%

2.8

Net Margin

3.1%

0.8%

2.3

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$196.1

$308.5

(36.4%)

Accounts Rec.

$82.1

$66.7

23.2%

Inventory

$203.7

$174.8

16.5%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$121.9

$103.3

17.9%

Long-Term Debt

$8.6

$12.9

(33.5%)



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$452.7

$410.8

10.2%

Capital Expenditures

$340.2

$324.1

5%

Free Cash Flow

$112.5

$86.7

29.7%



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Related Companies:

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

Related Foolishness:

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