Whole Foods plans new uniquely-branded store concept geared toward millennials

Belmar_store_main_image-Whole-Foods

Whole Foods Market announced, yesterday, May 6, 2015, reported results for the 12-week second quarter ended April 12, 2015. For the quarter, total sales increased 10% to a record $3.6 billion. Comparable store sales on a constant currency basis increased 3.6%, including an estimated 50 basis point positive impact from Easter shifting from the third quarter last year to the second quarter this year. Earnings before interest, taxes, depreciation and amortization were $355 million, or 9.7% of sales. Diluted earnings per share were $0.44, a 14% increase over the prior year.

“Today, we are excited to announce the launch of a new, uniquely-branded store concept unlike anything that currently exists in the marketplace,” said Walter Robb, co-chief executive officer of Whole Foods Market. “Offering our industry leading standards at value prices, this new format will feature a modern, streamlined design, innovative technology, and a curated selection. It will deliver a convenient, transparent, and values-oriented experience geared toward millennial shoppers while appealing to anyone looking for high-quality fresh food at great prices.” The Company is building a team to focus exclusively on this new concept and is currently negotiating leases. The plan is to begin opening stores next year, and given the more standardized design and product assortment, the Company expects a fairly rapid expansion from there. “We believe the growth potential for this new and complementary brand to be as great as it is for our highly successful Whole Foods Market brand,” added Robb. “We look forward to sharing more details about this exciting new venture sometime before Labor Day.”

During the quarter, the Company produced $322 million in cash flow from operations and invested $206 million in capital expenditures, resulting in free cash flow of $116 million. In addition, the Company returned $47 million in quarterly dividends to shareholders and repurchased $47 million of common stock, or 0.9 million shares. The Company ended the quarter with total cash and cash equivalents, restricted cash, and investments of approximately $1.1 billion. Return on invested capital increased 68 basis points to 15%. “Our results reflect another quarter of record sales and healthy returns on invested capital,” said libertarian-minded John Mackey, co-founder and co-chief executive officer of Whole Foods Market. “Our Whole Foods Market brand has helped lead the shift in consciousness toward fresh, healthy foods by offering the highest quality, broadest selection, and best customer service, and we believe we can triple the number of Whole Foods Market stores in the United States. At the same time, we also see an opportunity to leverage our long history of retail innovation and extend our reach in the marketplace.”

Results include a non-routine supplier credit of $7 million, or $0.01 in diluted earnings per share. During the quarter, the Company produced $322 million in cash flow from operations and invested $206 million in capital expenditures, resulting in free cash flow of $116 million. In addition, the Company returned $47 million in quarterly dividends to shareholders and repurchased $47 million of common stock, or 0.9 million shares. The Company ended the quarter with total cash and cash equivalents, restricted cash, and investments of approximately $1.1 billion. Return on invested capital increased 68 basis points to 15%. “Our results reflect another quarter of record sales and healthy returns on invested capital,” said John Mackey, co-founder and co-chief executive officer of Whole Foods Market. “Our Whole Foods Market brand has helped lead the shift in consciousness toward fresh, healthy foods by offering the highest quality, broadest selection, and best customer service, and we believe we can triple the number of Whole Foods Market stores in the United States. At the same time, we also see an opportunity to leverage our long history of retail innovation and extend our reach in the marketplace.” “Today, we are excited to announce the launch of a new, uniquely-branded store concept unlike anything that currently exists in the marketplace,” said Walter Robb, co-chief executive officer of Whole Foods Market. “Offering our

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