Executive Summary

• Whole Foods Market reported fiscal 3Q16 revenues of $3.7 billion, up 2% year over year and roughly in line with the consensus estimate. Adjusted EPS was $0.37, in line with consensus and representing a 14% decrease from EPS of $0.43 in the year-ago quarter.
• Comparable store sales decreased by 2.6% in the quarter and transactions were down 2.7%. Year to date, comparable store sales are down 2.4%.
• The company downgraded its outlook for FY16, citing the year-to-date comparable store sales decrease of 2.4% and continued healthcare costs.