AUSTIN, Texas -- Whole Foods Market here experienced increased sales but decreased earnings due to extraordinary charges incurred during the third quarter ended July 2.
Sales increased 23.1% from $97.4 million to $119.9 million. Same-store sales increased about 7.1%, the company said.
Net income fell 54.5%, from $2.2 million to $1 million.
The company incurred a charge of $2.3 million due to the relocation and consolidation of three stores into two and the relocation of corporate headquarters here.
For the year-to-date, sales increased 23% from $306.6 million to $375.9 million. Same-store sales increased 7.4%.
In the Austin market, sales averaged 30% higher than the year-ago period despite the presence of one less store, according to John Mackey, chairman and chief executive officer.
Income for the 40 weeks dropped 7.8%, from $6.4 million to $5.9 million. Whole Foods recently opened its first Los Angeles store since its merger with Mrs. Gooch's Natural Food Markets, Sherman Oaks, Calif., in 1993. The new location brings the company's total number of stores to 41, representing a 17% growth in number of units and a 20% growth in square footage thus far in the fiscal year.
"During fiscal year 1996, the company expects to open 10 to 13 stores and relocate three, for net unit growth of 17% to 24%, and square footage growth of 25% to 32%," according to a statement from Whole Foods.