Whole Foods Market (WFM) Fiscal 3Q17 Results: Same-Store Sales Declines Persist Ahead of Pending Takeover by Amazon

Executive Summary

• Whole Foods Market reported fiscal 3Q17 adjusted EPS of $0.36, ahead of the $0.33 consensus estimate but down 2.7% year over year. Total revenues were $3.73 billion, in line with the consensus estimate and up 0.6% from the year-ago quarter.
• Total comps decreased by 1.9% for the quarter; the decline was less than the 2.2% decline that analysts expected. The period marked the eighth consecutive quarter of comp declines, which have been driven by tougher competition from traditional grocers and big-box retailers that have been expanding their organic offerings.
• The company is not updating its outlook for the rest of the year, citing the pending takeover by Amazon. The e-commerce giant agreed to buy Whole Foods for $13.7 billion last month. Whole Foods expects the deal to be completed in the second half of 2017.