Whole Foods Announces Excellent 3Q04 Results

Whole Foods Announces Excellent 3Q04 Results

AUSTIN, TexasWhole FoodsMarket Inc. (NASDAQ:WFMI) posted sales and earnings for the third fiscal quarterended July 4, 2004 (3Q04). Sales for the 12-week quarter increased 22 percent to$917 million from $749 million for the same period in the prior year (3Q03).This increase was driven by 9 percent weighted average year-over-year squarefootage growth and store sales growth of 14.1 percent. Sales in identical stores(excluding two relocated stores and two major store expansions) increased 13.7percent for 3Q04.

Net income for 3Q04 increased 15 percent to $32.9 million from$28.7 million for 3Q03, and diluted earnings per share increased 10 percent to$0.50 from $0.45 for 3Q03. Excluding the pretax gain of approximately $3million, or approximately $0.03 in diluted earnings per share, related to thedistribution of proceeds from the sale of Blooming Prairie Cooperative in theprior year, net income for 3Q04 increased 22 percent and diluted earnings pershare increased 17 percent.

We are experiencing one of the best years in our companyshistory with sales increasing 23 percent to $2.9 billion, net income increasing34 percent to $107 million, which is more than we earned in all of last fiscalyear, and EVA [economic value added] improving over $10 million, said JohnMackey, chief executive officer, president, chairman and co-founder. Ourcomparable stores are producing record sales increases of 15.2 percent year todate, and our new stores continue to open above our expectations producing$595,000 in average weekly sales. We believe our strong results are due in partto the growing equity of the Whole Foods Market brand and demonstrate thetremendous growth opportunities that lie ahead for our company.