AUSTIN, Texas (AP) — Whole Foods is reporting another quarterly sales decline as it prepares to be acquired by online giant Amazon.
The grocery chain says sales fell 1.9 percent at established locations for the three months that ended July 2. That sales figure has been declining as Whole Foods faces competition from traditional grocers, big box retailers and others that have expanded their organic offerings.
Facing pressure from investors to improve its performance, Whole Foods agreed to be acquired by Amazon in a $13.7 billion deal announced last month that rattled the supermarket industry. The companies have not said what might change for customers, but Whole Foods CEO John Mackey told employees that he thought Amazon would help bring innovations the chain's stores.
"I think you're gonna see Whole Foods Market evolve in leaps and bounds," he said.
Amazon and Whole Foods expect the deal — which Mackey said came about after a "whirlwind courtship " — to close later this year.
For the quarter, Whole Foods earned $106 million, or 33 cents per share. Not including one-time item, earnings were 36 cents per share. Analysts expected 34 cents per share, according to Zacks Investment Research.Comment on this story
Total revenue was $3.73 billion in the period, above the $3.72 billion analysts expected.
Whole Foods shares have climbed 36 percent since the beginning of the year, while the Standard & Poor's 500 index has increased 11 percent. The stock has climbed 24 percent in the last 12 months.
Keywords: Whole Foods Market, Earnings Report, Priority Earnings