On Feb. 21, Stock Advisor recommendation Whole Foods Market (NASDAQ:WFMI) released first-quarter earnings for the period ended Jan. 14.

  • Sales increased by 12.2%, thanks to a 7% increase in comparable store sales.
  • The company signed a definitive merger agreement with Wild Oats Markets (NASDAQ:OATS) for a cash tender offer of $18.50 per outstanding common share.
  • For fiscal 2007, the company expects total sales growth of 13% to 17%, and comparable store sales growth of 6% to 8%.
  • Whole Foods Market has earned three stars in our Motley Fool CAPS database.

(Figures in millions, except per-share data)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$1,870.7

$1,667.0

12.2%

Net Profit

$53.8

$58.3

(7.8%)

EPS

$0.38

$0.40

(5.0%)

Diluted Shares

142.9

145.3

(1.7%)



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

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

34.3%

34.5%

(0.2)

Operating Margin

4.6%

5.5%

(0.9)

Net Margin

2.9%

3.5%

(0.6)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$148.0

$458.6

(67.7%)

Accounts Rec.

$77.7

$74.9

3.7%



Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$140.3

$108.2

29.7%

Long-Term Debt

$2.9

$9.4

(69.7%)



Learn the ways of the balance sheet.

Cash Flow Highlights

Q1 2007

Q1 2006

Change

Cash From Ops.

$112.4

$88.2

27.4%

Capital Expenditures

$52.1

$33.7

54.4%

Free Cash Flow

$60.3

$54.5

10.7%



Find out why Fools always follow the money.

Related Companies:

  • Safeway (NYSE:SWY)
  • Great Atlantic & Pacific Tea (NYSE:GAP)
  • Kroger (NYSE:KR)
  • Weis Markets (NYSE:WMK)
  • Pathmark (NASDAQ:PTMK)

Related Foolishness:

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