>I wonder how hard WFMI will be hit in the morning?
yikes! this one's gonna hurt. first call estimate was at $0.58(!). anyone got instanet? briefly halted after hours.
more from cbs.marketwatch:
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Whole Foods sees shortfall in quarter
By Janet Haney, CBS MarketWatch
8:11 PM ET Jan 13, 1999 Earnings Surprises
AUSTIN, Texas (CBS.MW) -- Whole Foods Market said Wednesday it now expects to report first-quarter 1999 earnings that are lower than previously anticipated. It blamed the shortfall on increased expenses.
The Austin, Texas-based company (WFMI) said it now sees earnings per share of between 45 and 50 cents. The First Call consensus was 58 cents.
Sales for the period are predicted to total approximately $455 million. Comparable-store sales, according to the company, are expected to increase 6.4 percent for the first 15 weeks of the 16-week period.
Whole Foods, which operates 87 stores, cites higher-than-expected direct store expenses, as well as increases in its general and administrative expenses for the anticipated shortfall. The store costs stem from overbudget salaries and benefits, the company said.
"Sales and gross margins remain strong, but we have seen some of our expenses get out of control temporarily," John Mackey, chairman and chief executive, said in a press release. "We expect to get expenses quickly back in line and do not think the first quarter is reflective of our ability to deliver strong earnings growth for our shareholders in the future."
The company, which has 29 stores in development, said it also made investments to "support" the expansion. Whole Foods Market sees costs associated with the so-called Y2K problem at $600,000 for the quarter.
Results for the period are expected on Feb. 16. Shares of the company slipped 1 3/16 to 44 1/2 Wednesday, before the announcement. |
