Whole Foods Market reported results for the 12-week second quarter ended April 10, 2016. Total sales increased to a record $3.7 billion.
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Comparable store sales decreased 3%. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $353 million, or 9.5% of sales, diluted earnings per share were $0.44, and adjusted return on invested capital was 14%.
During the quarter, the Company produced $343 million in cash flow from operations and invested $159 million in capital expenditures, returned $44 million in quarterly dividends to shareholders and repurchased $100 million or 3.5 million shares of common stock.
The Company ended the quarter with $1.1 billion of total debt and $1.3 billion of total available capital. Subsequent to the end of the quarter, the Company repurchased $50 million or 1.7 million shares of common stock.
“We produced record sales and operating cash flow, and returned $144 million of capital to our shareholders. Through our improved cost structure and expense disciplines, we delivered strong EBITDA in a challenging sales environment,” said John Mackey, co-founder and co-chief executive officer of Whole Foods Market.
“Food retailing is evolving at an incredibly fast pace, and consumers have more options than ever before.
“In addition to becoming more competitive on price, we are making measurable progress in fundamentally evolving our business and providing an enhanced experience for our customers across all platforms before, during and after their visit.”
“We are very excited to be just three weeks away from opening our first 365 by Whole Foods Market store on May 25 in Silver Lake, California.
“Created to complement our Whole Foods Market stores, our new 365 format will offer our same industry-leading standards and dedication to food transparency in a streamlined format designed around affordability and convenience and supported by enhanced digital experiences,” said Walter Robb, co-chief executive officer of Whole Foods Market.
“We believe there is customer demand for both formats, and as a second growth vehicle, 365 allows us to attack the value-quality proposition in a new way, while maintaining the integrity the Whole Foods Market brand represents in the marketplace.
“Our Silver Lake opening will be quickly followed by openings in Lake Oswego, Oregon and Bellevue, Washington. We are excited to learn from these first three stores and evolve from there.” ■
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