Boulder, Colo. – Natural foods retailer Wild Oats Markets Inc. today said its first-quarter net income fell 44 percent because of expenses related to the chain’s planned sale to competitor Whole Foods Markets Inc.
Excluding the $3.5 million charge, Wild Oats’ results beat Wall Street’s expectations.
For the quarter ending March 31, net income totaled $1.6 million, or 5 cents per share, compared with $2.9 million, or 10 cents per share, in the first quarter of 2006.
Wild Oats said its net income was $5.1 million, or 17 cents a share, without the charge of 12 cents a share. In the first quarter of 2006, net income was hurt by charges totaling $1.7 million for restructuring, asset impairment and other items.
Analysts polled by Thomson Financial expected a profit of 14 cents on revenue of $304.9 million.
First-quarter revenue was $309.9 million, up 4 percent from $298.4 million in the previous first quarter. Wild Oats credited the increase in part to the opening of seven new stores in the past year. Last year, the retailer closed nine stores.
Sales in stores open at least one year were up 0.3 percent, compared with 4.1 percent at the same time in 2006.
Boulder-based Wild Oats has agreed to be acquired by Whole Foods Markets of Austin, Texas, for $565 million cash. The tender offer is set to expire on May 22.
Wild Oats’ stock was unchanged at $18.04 a share in morning trading. In the past year, it has traded between $13.88 a share and $20.50 a share.
