AUSTIN, TX - Whole Foods Market has announced some major moves for its 365 by Whole Foods Market banner this week. The company will take its total number of leases for the chain up to 19, adding six new locations in Akron and Toledo, OH; Bloomington, IN; Decatur, GA; as well as North Hollywood and Long Beach, CA.
“Created to complement our Whole Foods Market stores, our new 365 format will offer our same industry-leading standards and dedication to food transparency in a streamlined format designed around affordability and convenience and supported by enhanced digital experiences,” said Walter Robb, Co-CEO of Whole Foods, in a statement.
Despite a few rumblings in the financial community about the 365 banner creating some inside competition with the company’s flagship banner, Robb was sure to emphasize his confidence in what he sees as its inevitable growth. “We believe there is customer demand for both formats, and as a second growth vehicle, 365 allows us to attack the value-quality proposition in a new way, while maintaining the integrity the Whole Foods Market brand represents in the marketplace.”
Three 365 by Whole Foods Market stores will open in 2016:
- Silver Lake, Los Angeles, CA, on May 25
- Lake Oswego, OR, on July 14
- Bellevue, WA, this Fall
As many as ten additional 365 by Whole Foods Market stores are expected to open in 2017.
Along with the new store announcements, Whole Foods Market released its financial results for Q2 2016, revealing increased total sales reaching a record $3.7 billion. While comparable store sales decreased 3.0 percent, Whole Foods posted adjusted earnings of 44 cents a share, up three cents from Reuters’ analysts expectations of 41 cents a share.
“We produced record sales and operating cash flow, and returned $144 million of capital to our shareholders. Through our improved cost structure and expense disciplines, we delivered strong EBITDA in a challenging sales environment,” Mackey continued. “In addition to becoming more competitive on price, we are making measurable progress in fundamentally evolving our business and providing an enhanced experience for our customers across all platforms before, during, and after their visit.”
Other highlights from Whole Food’s Q2 financial report include:
- EBITDA was $353 million, or 9.5 percent of sales
- Produced $343 million in cash flow from operations
- Invested $159 million in capital expenditures
- Returned $44 million in quarterly dividends to shareholders
- Repurchased $100 million or 3.5 million shares of common stock
- Ended Q2 with $1.1 billion of total debt and $1.3 billion of total available capital
- Repurchased $50 million or 1.7 million shares of common stock
Whole Foods stock jumped over 5 percent following the financial announcement, reaching $30.01 as of 12:56 PM EDT on May 5th. This brings the retailer up to a market cap of $9.66 billion.
As Whole Foods continues to rapidly grow both its sales and its 365 banner, AndNowUKnow will update you with the latest.
