Whole Foods Is Crumbling (WFM)
Whole Foods is down 11.5% to $57.06.
The stock took a beating after hours on Wednesday after the company reported Q4 earnings.
While the company beat earnings expectations by a penny it lowered guidance and disappointed on same-store sales.
Brian Sozzi, CEO and chief equities strategist at Belus Capital Advisors, pointed out three unhealthy details from the Whole Foods earnings report.
First, he pointed out that same-store sales growth had moderated. Second, Whole Foods gross margin seems to be driven by lower costs suggesting they're pricing more competitively. Third, the company lowered guidance.
"Food retailing is more competitive than ever and with the growing demand for fresh healthy foods, it seems like everyone is adding to or expanding their offering of natural and organic products," Whole Foods CEO John Mackey said on a conference call with investors.
Here's a look at how Whole Foods' has been trading:
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