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Non-Tech : Natural/Health Food Industry Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Greger who wrote (159)	1/13/1999 8:43:00 PM
From: Luce Wildebeest	Read Replies (2) \| Respond to of 337

I wonder how hard WFMI will be hit in the morning? Whole Foods Market Announces Preliminary 1Q99 Sales and Earnings AUSTIN, Texas--(BUSINESS WIRE)--Jan. 13, 1999--Whole Foods Market (Nasdaq:WFMI - news; ''The Company'') today announced that it will not meet the consensus earnings estimate of $0.58 for the first fiscal quarter ending Jan. 17, 1999. The Company expects earnings per share to be in the range of $0.45 to $0.50. Sales for the first quarter are expected to be approximately $455 million, with comparable store sales increasing 6.4% for the first 15 weeks of the 16-week period. The Company attributes the shortfall in earnings to higher-than-expected direct store expenses as well as increases in general and administrative expenses at the regional and national levels. The higher direct store expenses are primarily salaries and benefits which are over budget in the quarter. Additionally, the Company has made large investments in national and regional infrastructure to support the record 29 stores in development, the most aggressive new store development schedule in the Company's history. Selling, general and administrative expenses as a percentage of sales are now expected to be 50 to 100 basis points higher than in the first quarter of the prior year. Part of this increase is due to Y2K remediation costs, which are estimated to be approximately $600,000 for the quarter and $2 million for the year, as disclosed in the Company's most recent Form 10-K. ''Sales and gross margins remain strong, but we have seen some of our expenses get out of control temporarily,'' said John Mackey, Chairman and Chief Executive Officer of Whole Foods Market. ''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 expects to release final first quarter results after the close of the stock market on Feb. 16, 1999.