The Fresh Market (TFM) Stock Plunges on Lower Full Year Guidance
NEW YORK (TheStreet) -- The Fresh Market (TFM) stock is retreating 5% to $23.01 in afternoon trading on Friday after the company lowered its revenue and same stores sales growth outlook for fiscal 2015.
Annual revenue growth is not expected to exceed 6.5%, compared with fiscal 2014, down from the previous top line growth of 7% and short of estimates of an increase of 6.8%.
Comparable store sales are expected to drop 2% to 2.6%, down from the previous outlook of a 1% to 2.5% decline.
Under new management, the grocery store chain is conducting a strategic and financial review of its business, which may lead to a sale of the company, a change in structure or other alternatives.
CEO Rick Anicetti was appointed in September and has laid out plans to improve the business, including price cuts, operational improvements and investments in brand differentiation, Jefferies said in an analysts note this morning.
The firm reiterated its "buy" rating and $29 price target.
Separately, TheStreet Ratings team rates FRESH MARKET INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate FRESH MARKET INC (TFM) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.
You can view the full analysis from the report here: TFM
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