Whole Foods Too Pricey For Shoppers

Whole Foods Market(WFMI Quote) can't seem to shake its rich-kid persona -- which has not surprisingly proved a liability in a time of economic strife.

The grocery chain posted a 32% drop in second-quarter earnings, as consumers cut back on pricey foods and stick to private-label products.

During the quarter, the company earned $27.3 million, or 19 cents a share, missing forecasts of 19 cents. This compared with earnings of $40 million, or 29 cents, last year.

Sales remained flat at $1.9 billion, but same-store sales dropped 4.8% during the quarter.

Despite the hesitance of consumers to purchase expensive organic foods, shares of Whole Foods managed to rebound during the second quarter, as it cut costs and got a major investment.

On Wednesday shares plummeted 9% in afternoon trading, to close at $20, but regained some momentum in after-market trading, climbing 8% to $21.60.