Whole Foods shakes up board as key sales figure falls again

James Marshall
May 13, 2017

Below, let's review both the numbers and the multipronged shift in strategy. The firm's quarterly revenue was down 99.9% compared to the same quarter past year.

The company has been one of the biggest innovators in "Grocery Stores" employing approximately 87000 full time employees.

Henderson Group PLC raised its position in shares of Whole Foods Market, Inc.

Same-store sales were down 2.8 percent for the quarter, a shallower drop than Wall Street had expected. She noted the plan was approved by the same outgoing board that badly missed some financial targets of Whole Foods' 2014 strategic plan. Sustainable Growth Advisers LP now owns 5,462,214 shares of the company's stock valued at $154,854,000 after buying an additional 866,404 shares in the last quarter. After testing out approaches, the Austin, Texas-based company will roll out the initiative to all USA stores by the end of the year. (NASDAQ:WFM), after opening at $36.85, closed at $36.71 by scoring -0.43%. Within flagship stores, 44% of sales transactions occur on the loyalty platform.

In this May 3, 2017, photo, organic bananas are displayed at a Whole Foods Market grocery store, in Upper Saint Clair, Pa. The company has a consensus rating of "Hold" and a consensus target price of $32.74. The company now has four in operation with 22 in development. In April, rumors of a Whole Foods takeover by Albertsons, Kroger and others swirled.

Of late, grocery chains have been going through a rough patch.

On Wednesday, Whole Foods said it expects its various initiatives to help sales at established locations turn positive by the end of its fiscal 2018. Earnings-per-share growth gives a good picture of the rate at which a company has grown its profitability per unit of equity. Whole Foods Market now has a consensus rating of "Hold" and a consensus target price of $32.74. Also, the Hold rating count is 9 as of 05/08/17. 5,331,457 shares of the stock were exchanged.

Are you keeping track of all of these changes? The company appointed five new directors and a new CFO to improve their business model and sluggish revenue generation.

Reuters earlier on Wednesday reported that Whole Foods planned to remove more than half its board, citing a person familiar with the matter.

"It's clear the company is attempting to show a new sense of urgency given the evolving shareholder backdrop...we see the moves as a step in the right direction but were disappointed with the lack of food retail experience among the new board members", the analysts said, noting that if the company hits the growth targets outlined on Wednesday evening, the stock could see "meaningful upside".

Shareholders are likely trying to make sense of the impact of the various initiatives and goals Whole Foods put forward alongside its earnings release. Earnings, with 23 analysts believing the company would generate an Average Estimate of $0.37.

He's also pursuing a sideline as an author and food advocate. Management intends to reinvest almost all the projected $300 million of cost savings through 2020 into lower pricing, which should help drive traffic beyond the organization's core customer base.

Whole Foods has been grappling with waning comparable-store sales (comps) performance since the past six quarters.

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. The original version of this article can be read at https://www.chaffeybreeze.com/2017/05/11/sumitomo-mitsui-trust-holdings-inc-has-27-911-million-stake-in-whole-foods-market-inc-wfm.html. Gordon Haskett analysts stated on 09/05/2017 that they launched coverage on this stock with Buy rating.

"Whole Foods Market now operates 12 distinct operating divisions - so the move to streamline operations is reminiscent of Macy's cost efforts roughly 10 years ago", he said.

Other reports by Click Lancashire

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