Profits, sales up in Whole Foods first quarter

Organic and natural foods retailer Whole Foods Market said yesterday that profit rose in this year's first quarter thanks to new stores and a 10.5 per cent increase in sales at existing stores.

The retailer added that net income in the quarter ended January 19, 2003 rose 27 per cent to $25.6 million from $20.1 million a year earlier.

"The economy continues to have little to no apparent impact on our sales. For the fourth consecutive quarter, we delivered comparable store sales increases of over 10 per cent,"​ said John Mackey, president and CEO, in a bullish statement.

Quarterly sales rose to $923.8 million from $780.8 million a year ago, according to the Texas-based company, which opened five new stores in the first quarter, leaving the company with 140 stores throughout the US and Canada. So far during the second quarter, Whole Foods has opened two new stores.

The company is sticking to its earlier prediction of sales up 15-20 per cent for the full year. Comparable store sales are expected to increase 8-9 per cent in the second quarter and 6.5-8.5 per cent for the remainder of the year. However it warned that it is up against a 10.1 per cent comparable store sales increase in the prior year, and the continued uncertainty in the economy and political environment could have an impact.

Gross profit is expected to be flat to slightly higher as a percentage of sales.