Established 1999
     
8,000 companies from USA and India.  
   
Search over 25,500 news articles and 8,000 companies earnings    
 
Market Update : 
Whole Foods Market Q1 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 10:59 AM ET February 22 2010


(Continued)

Email article | Print article

 
Mark Wiltamuth - Morgan Stanley

Okay. Thank you very much.

Operator

We will take our next question from Meredith Adler with Barclays Capital. Please go ahead.

Meredith Adler - Barclays Capital

Hi. Thanks for taking my question. I was wondering just talking a little bit following on Mark’s question, you talked about very strong volumes in produce and I don’t know whether we have a lot of, you have a lot of experience with the kind of inflation and deflation we have seen recently in produce. But is some of it people responding to the lower prices, just generally, the people are buying more produce because there are lower prices?

A.C. Gallo

Yes. I think, last year when we started to have price deflation in produce and we wound up lowering a lot of prices, initially we saw produce volume actually dropping because we were -- initially saw a drop in average transaction because of lower price and not enough tick in volume. But then over the course of time we started to see that, started to see the volume pick up and we have held -- at this point now, our pricing versus a year ago, is staying fairly steady and the increase in tonnage that we are selling in produce is really what’s adding to the -- to the volume.

Meredith Adler - Barclays Capital

Okay. Do you think the customers are proceeding better pricing or that’s just really not it?

A.C. Gallo

Yes. I do believe our customers are perceiving better pricing. We have done -- We have done a lot of -- we have been doing a lot of promotions each region again slightly different. For instance, our North Atlantic region has a program they call Madness Specials that they run two weeks out of every month. They also run weekend Madness Specials and on perishables and those stores have very large dramatic displays of whatever the hot produce item is right now and the sales have been tremendous on it.

So the feedback we are getting from our customers is that they -- we have this feedback a lot over the last year. It was visible to them, that we were really reacting to the different economic times and they really appreciated it. They saw we were really making an effort to make, to increase the value and make it easier for them to continue to shop with us, to shop with us more and again we got a lot of positive comments from our customers about that.

Meredith Adler - Barclays Capital

That’s great. Just a follow up question, when I look at your comp numbers, it looks like the stores two to four years old, which is also the biggest group in terms of the average store size is the biggest, are the stores that are probably struggling the most. Any thoughts about what you do to give those stores a boost or get them back on track or I don’t know how well they’re performing from a bottom line perspective? But is there anything you do if you are not happy with that performance to make it better?

John P. Mackey

We think it will look different next quarter. This is a common problem because stores move in and out of those categories every quarter and I wouldn’t, I wouldn’t read too much into that. So, I don’t think, for example you said the average size, but if you look at that chart Meredith you will see that actually the stores that are less than two years old are actually bigger in size at 52,900 square feet to the stores that are two to five years of age, may have significantly better comps.

So, there’s lots of factors and some times a new cohort of stores each year -- we don’t have as many good stores and they don’t comp as well or they have cannibalized by other stores that have opened up for competitive entries, I wouldn’t read too much into it. It is next quarter, we could see that number to be much higher. So, I don’t think -- maybe Walter you will want to add something to it.

Glenda J. Chamberlain

I will add to it. Actually, what you are talking about the two to five year old category.




  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16

 


 
Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites.
Market data: BATS Exchange. Inc.

350 Fund Managers Interviews - 10-year Annual earnings on 4,600 U.S. companies - 20-quarter Earnings on 3,800 U.S. companies - 3,200 U.S. IPO Prospectuses
- 2,100 Economic data releases from U.S., EU, UK, India, HK and Australia. 10-year Annual reports on 3,500 U.S. companies -
U.S. Earnings Calendar with 4,800 companies - 90,000 10-K reports - 26,000 Global markets news archive - 2,200 Earnings Conference Call Summaries

Other Sites:
© 1999-2012 123jump.com. All rights reserved