AUSTIN, TX - As reported by the Austin American Statesman, as Whole Foods continues its uphill battle against its organic retail competition, the company has gotten some less than favorable news from stock exchange giant Nasdaq. The New York-based financial institution has announced plans to drop Whole Foods from its Nasdaq-100 index.
As explained on its website, the Nasdaq-100 is a list of 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization. Since 2013, Whole Foods’ market cap has declined from more than $22 billion, to sitting around $9.9 billion currently, Yahoo Finance reports.
“We remain focused on our plan to position the company for continued success,” Whole Foods stated, according to The Austin American Statesman. “We believe we have the right strategies in place to position the company to produce strong results and returns for our shareholders over the long term.”
Why has the company's market cap been falling over the last few years? Analysts mainly cite increased competition from other organic and healthy-focused retailers, especially with newer and oft times cheaper combatants like Aldi and Lidl taking the stage.
The company’s fourth quarter financial report ended September 25 revealed that total sales increased to a record $3.5 billion with earnings per share at 28 cents. However, Reuters analysts had projected an earnings per share of 24 cents.
According to Nasdaq, the Nasdaq-100 index is re-ranked each December. This year, as a result of the re-ranking, four companies will drop off effective December 19:
- Whole Foods
- Bed Bath & Beyond
- NetApp Inc.
- Stericycle Inc.
Being added to the index are:
- Cintas Corporation
- Hasbro Inc.
- Hologic Inc.
- KLA-Tencor Corporation
With an entire year to once again ramp up its share value and market cap, will we see Whole Foods make another appearance on the coveted list? AndNowUKnow will keep bringing you the latest.
