Whole Foods Market Inc.'s profit rose 11% as the grocery chain
reported higher sales in the second quarter, which this year
included the Easter holiday.
The company didn't disclose customer traffic figures in its
release.
Shares, down 0.48% over the past 12 months, fell 10% to $42.85
in late trading.
In response to growing competition in the natural and organic
food industry, the Austin, Texas, chain has added more
store-branded foods, introduced a customer loyalty program, and
last October launched its first national brand campaign. On
Wednesday, the company said it planned to launch a new store
concept geared to "millennial shoppers," but offered few details in
a news release.
Whole Foods, which has more than 400 stores in the U.S. and
targets about 1,200 stores, has sought to stand out by opening or
remodeling stores to add unique features, like rooftop beer
gardens, and technology initiatives.
For the 12 weeks that ended April 12, sales at stores open at
least 13 months rose 3.6%, adjusted for currency fluctuations.
Overall, Whole Foods reported a profit of $158 million, or 44
cents a share, up from $142 million, or 38 cents a share, a year
earlier.
Revenue increased nearly 10% to $3.65 billion.
Analysts surveyed by Thomson Reuters expected a profit of 43
cents on revenue of $3.70 billion.
Write to Maria Armental at maria.armental@wsj.com