Whole Food Market may be a healthy eaters' haven, but shareholders are not showing confidence in the grocer's financial well-being. The stock was down 8.5% to $59 in after hours trading.
The company reported fourth quarter 2013 net income of $121 million, or 32 cent per share on consensus estimate of 31 cents. Sales were up 2% to $3 billion, slightly lower than Street expectations.
Looking ahead to 2014,
This quarter, same store sales grew 5.5% and 12 new stores were added. The company currently has 367 stores over 13.9 million square feet. CEO John Mackey noted that the grocer continues to open new stores and improve operating margins.
"We are dedicated to providing our communities with fresh, healthy, natural and organic food," he said, "and with 94 leases in our development pipeline, we look forward to delivering accelerating new store growth for several years to come."
Stores less than two-years old saw the largest increase with 18.7% growth, this includes 25 new locations and five relocations. The 49 Whole Foods stores between eight and 11 years old had the slowest growth at 4%. The 86 oldest stores, 15 to 19 years, saw 4.3% growth.
For the full year, net income was $551 million, or $1.47 per share. Sales were up 10% to $12.9 billion. Same store sales were up 6.6%. Shares are up 30% year-over-year.
The company also announced a 20% quarterly divided hike to 12 cents a share, for a total of $180 million paid out to shareholders annually. The first divided at this rate will be paid in late January 2014. The company also announced an additional $500 million in share buybacks.
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