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

To: Luce Wildebeest who wrote (160)	1/14/1999 12:49:00 AM
From: Beltropolis Boy	Read Replies (1) \| Respond to of 337

>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: ----- 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.

To: Luce Wildebeest who wrote (160)	1/14/1999 11:16:00 AM
From: Beltropolis Boy	Read Replies (1) \| Respond to of 337

the local take via austin follows. we saw the resultant symptom; the good news is that mackey says the causative effect is freudian. eureka! the nexus of cause and effect is identified and perhaps only a quarter or two of psychoanalysis is required ... ----- Whole Foods says it won't meet quarterly earnings estimate By R. Michelle Breyer American-Statesman Staff Posted: Jan. 14, 1999 Higher-than-expected labor costs, aggressive growth and expenses related to solving year 2000 computer glitches will prevent Whole Foods Market Inc. from meeting its earnings estimates for the first quarter, company officials said Thursday. Rather than the 58 cents it originally forecast for the first fiscal quarter of 1999, the company expects earnings per share of between 45 cents and 50 cents when it releases its results Feb. 16. Sales for the quarter are expected to be $455 million. "We've done a poor job of managing labor at the store level," said Jim Sud, vice president of operations for the 87-store natural foods supermarket chain. "Everyone knows where the problem is and where to fix it." Whole Foods Chairman and Chief Executive John Mackey said steps already have been taken to correct the problems. Those won't include any major job cuts, but some employees may be asked to work fewer hours, company officials said. When asked why the company was suddenly having trouble controlling its expenses after several quarters of strong earnings growth, Mackey said it could be psychological. "We had our most successful year in 1998," he said. "Given that prosperity, there may be some complacency from the top on down." Wednesday, Whole Foods stock closed at $44.50, down $1.18 3/4. The company made its earnings warning after the stock market closed. austin360.com