Whole Foods Market Inc. said Wednesday that comparable sales fell again in the latest quarter, extending a streak going back two years as the natural grocer faced up to tougher competition.
Same-store sales fell by 1.9% during its fiscal third quarter ended July 2, compared with a year ago. Whole Foods plans to sell itself to Amazon.com, and has promised to reverse the sales losses by the end of its current fiscal year in September.
Continue Reading Below
John Mackey, the company's chief executive and co-founder, said same-store sales turned positive in the last three weeks of July.
"Our comparable store sales improved," Mr. Mackey said.
The company's stock was flat in intra-day trading at $41.82, a slight dip from the $42 a share Amazon offered to acquire the company last month for a total of $13.7 billion, including debt. The merger would be the third-largest retail tie-up in the U.S. since 1995, according to Dealogic.
Whole Foods skipped an investor call on Wednesday because of the pending deal.
Whole Foods reported several hours ahead of schedule after a J.P. Morgan Securities LLC analyst released some of the company's earnings numbers. The analyst, Ken Goldman said they were part of a "surprise intra-day release." Asked to comment on the mix-up, Mr. Goldman only pointed to his initial research note. A Whole Foods spokeswoman wouldn't comment on the matter or confirm the numbers he reported, but they were reflected in the release Whole Foods put out two hours later.
Net profit fell to $106 million in the quarter from $120 million a year earlier. Per share earnings dipped to 33 cents from 37 cents. Earnings-per-share and same-store sales beat forecasts.
Earlier this year, Whole Foods faced demands from activist investors to explore a sale and replace its board among other issues. Mr. Mackey forged the deal with Amazon in part because they saw that partnership as more favorable than contending with the activist demands, according to a corporate filing.
Investors are expected to vote on the deal on Aug. 23. Hedge fund Jana Partners LLC fund sold its nearly 9% stake in Whole Foods last week for a profit of roughly $300 million. Mutual-fund manager Neuberger Berman still owns a roughly 2.7% stake, making it Whole Foods's sixth-largest investor, according to FactSet.
Roughly a dozen members of Congress have called for a close review of the Whole Foods-Amazon deal. The Consumer Watchdog group is lobbying the Federal Trade Commission to block it on allegations that Amazon's pricing discounts are misleading.
An Amazon spokesman said those assertions "are flat out wrong."
--Laura Stevens contributed to this article.
Write to Heather Haddon at firstname.lastname@example.org
(END) Dow Jones Newswires
July 26, 2017 15:25 ET (19:25 GMT)