Whole Foods Market Inc. beat analysts estimates despite reporting a 13 percent decline in its fiscal second-quarter profit on charges related to the acquisition of rival Wild Oats Markets for $565 million in 2007.
The U.S. largest natural and organic grocery-chain reported its profit fell to $40 million, or 29 cents a share, compared to $46 million, or 32 cents a share the previous year. Sales for the period ended April 13 rose 28 percent to $1.9 billion from $1.5 billion, the company added.
Analysts expected an average of 30, or 31 cents a share according to polls by Thomson Reuters and FactSet Research respectively.
Whole Foods said expenses related to the purchase of Wild Oats had a negative impact on net income totaling $8.6 million or 6 cents a share. It confirmed a fiscal 2008 forecast given on February where it said it expected total sales growth of 25 to 30 percent and a growth of 7.5 percent to 9.5 percent for comparable store sales.
The Austin, Texas company's shares dropped 8.29 percent on Tuesday to $33.64 in after hours trading on the Nasdaq Composite Index.