Whole Foods Comps Slip for 8th Straight Quarter

Whole Foods Market Inc. has reported more rough news in its report covering Q3 earnings of fiscal 2018, as the natural and organic grocer moves closer to completing its anticipated acquisition by Amazon.com.

During the 12 weeks ending July 2, the company's total sales increased 0.6 percent to a record $3.7 billion, but comparable-store sales fell 1.9 percent. This marked the Austin, Texas-based grocer’s eighth consecutive quarter of declining comps, although CEO John Mackey reported that they’ve improved. Net income was $106 million.

“For the quarter, we delivered record sales and free cash flow, and returned $44 million in dividends to our shareholders,” Mackey said. “Our comparable-store sales improved sequentially on a one- and two-year basis in the third quarter, and that momentum has accelerated 220 basis points in the fourth quarter, resulting in positive overall comps for the first three weeks."

During Q3, Whole Foods opened six stores, including one relocation. Thus far in Q4, it has opened two stores, and expects to open four more – two Whole Foods Market stores and two Whole Foods Market 365 stores, including one relocation.

On June 16, Amazon revealed its intent to acquire Whole Foods for $13.7 billion. As a result, the grocer will not be updating its outlook for fiscal 2017 or longer-term targets, nor will it hold a conference call to discuss Q3’s financial results.