Whole Foods Shares Climb with Better –Than-Expected Earnings Report
On Wednesday, Whole Foods Market Inc, U. S's largest natural and organic grocery chain reported better-than-expected earnings for the fiscal second quarter. The Austin, Texas, based company attributed it to, cost cuts at the same time lowered prices as it faces tough competition from retail rivals like Wal-Mart Stores Inc, Kroger Co and other grocers that are growing their reach to the specialty area with was pioneered by Whole Foods. However, the company cut its full-year sales and profit guidance on Wednesday as fresh rounds of discounts did not work too well to stop one of the slipping revenue measures.
The main challenge for Whole Foods is to guard its profits alongside working to put away its reputation of "Whole Paycheck" that it earned from the lofty prices.
Whole Foods shares scaled 2.4 percent to $29.19 during the afterhours trading. However, it was still way off from the all-time high of more than $63 in October 2013.
This month, the chain will launch its ore affordable chain called 365 and will open its first store Silver Lake, Los Angeles, on May 25. The new chain of 365 by Whole Foods Market is expected to help the company provide better for the changing shopping habits of the customers. Many people prefer multiple trips to the stores all throughout the week to get their grocery.
Whole Foods has cut down its labor costs in recent times by centralizing marketing and a part of its purchasing.
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