Whole Foods Market Reports First Quarter Results
Since the fourth quarter earnings release, the Company reduced the size of one store in development by 11,100 square feet and terminated the lease for one store in development totaling 45,000 square feet. The Company also recently signed six new leases in Ottawa, Canada; Danbury, CT; Jamaica Plain, MA; Lynnfield, MA; Marlboro, NJ; and San Antonio, TX. These stores currently are scheduled to open in fiscal year 2012 and beyond.
The following table provides additional information about the Company's store openings in fiscal years 2010 and 2011 year to date, leases currently tendered but unopened, and total development pipeline (including leases currently tendered) for stores scheduled to open through fiscal year 2014. For accounting purposes, a store is considered tendered on the date the Company takes possession of the space for construction and other purposes, which is typically when the shell of the store is complete or nearing completion. The average tender period, or length of time between tender date and opening date, will vary depending on several factors, one of which is the number of acquired leases, ground leases and owned properties in development, all of which generally have longer tender periods than standard operating leases.
|New Store Information||Stores Opened FY10||Stores Opened FY11 YTD||Current Leases Tendered||Current Leases Signed|
|Number of stores (including relocations)||16||3||17||56|
|Number of relocations||0||0||6||8|
|Number of lease acquisitions,|
|ground leases and owned properties||0||0||4||4|
|Average store size (gross square feet)||42,600||43,800||40,100||37,800|
|Total square footage||682,200||131,300||681,100||2,129,000|
|Average tender period in months||10.9|
|Average pre-opening expense per store (incl. rent)||$2.6 mil|
|Average pre-opening rent per store||$1.2 mil|
|Average development cost (excl. pre-opening)||$11.1 mil|
|Average development cost per square foot||$261|
Updated Outlook for Fiscal Year 2011
The following table provides additional information on the Company's updated 2011 outlook.
|Prior FY11 Outlook||Current FY11 Outlook||Q1 Actual||Q2-Q4 Implied Outlook|
|Sales growth||10% - 12%||10.7% - 12.8%||13.8%||9.4% - 12.4%|
|Comparable store sales growth||5.5% - 7.5%||7.2% - 9.2%||9.1%||6.3% - 9.2%|
|Two-year comps||12.6% - 14.6%||14.3% - 16.3%||12.6%||15.0% - 17.9%|
|Identical store sales growth||5.0% - 7.0%||7.0% - 9.0%||9.1%||6.1% - 9.0%|
|Two-year idents||11.5% - 13.5%||13.5% - 15.5%||11.6%||14.4% - 17.3%|
|Weighted square footage growth||5%||5%||6%||5%|
|LIFO charge||$0||$4.5 - $5.0 mil||$2.0 mil||$2.5 - $3.0 mil|
|Pre-opening and relocation costs||$52 - $55 mil||$50 - $53 mil||$11.8 mil||$38 - $41 mil|
|EBITDA||$780 - $795 mil||$800 - $815 mil||$234 mil||$571 - $581 mil|
|Net interest expense / (income)||$1 - $3 mil||($1) - ($2) mil||($0.3) mil||($0.7) - ($1.7) mil|
|Diluted shares outstanding||173 mil||175 - 176 mil||175 mil||175 - 177 mil|
|Diluted EPS||$1.66 - $1.71||$1.76 - $1.80||$0.51||$1.25 - $1.29|
|YOY % change||16% - 20%||23% - 26%||59%||13% - 16%|
|Capital expenditures||$350 - $400 mil||$350 - $400 mil||$91 mil||$259 - $309 mil|
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