For the fourth consecutive quarter, the Whole Foods Market Inc has proven itself to be a profitable company. The positive earnings in its second quarter reports are showing positive signs for Texas based grocery giant. In current years second quarter the earnings of the company increased by 13.2 percent. The earnings per share were 43 cents, more than the projections by the Zacks Consensus Estimate. The supermarket chain specializes in the delivery of organic and natural foods to the consumers.
The share values dipped by 11.4 percent after trading hours were finished. The investors are depressed about the missed revenue target. The projections said that the company will earn revenue of $3,711 but it only earned $3,647 million. Effective inventory management and improved store level performance has pushed top line by 9.8 percent annually. The restructuring of its pricing pattern and a strong focus on value offerings have been top agendas of the Zacks Rank #2 company.
The competition is increasing as more companies are entering into the Organic & Natural food sector. Wal-Mart Stores Inc., Sprouts Farmers Markets and Kroger Co. are giving tough competition to Austin based giant. The company launched online delivery services with help of Instacart in order to fulfill the growing demand. The management is exploring all possible ways to capture the market; it includes branding campaigns, home delivery services and store expansion. The digital media campaign is on at full pace. It is redesigning its stores based on modern looks equipped with innovative technology to kill the competition in the sector.