Whole paycheck? That’s what it might take to cover your losses on Whole Foods shares.
The organic supermarket’s stock plunged 19 percent Wednesday on disappointing results, wiping out more than $3 billion in market capitalization in a single session — the stock’s worst day in more than five years.
The problem: a weak outlook for sales and profits that signals the end of the company’s unquestioned dominance in upscale groceries.
“For a long time Whole Foods had the field to ourselves,” founder and co-Chief Executive John Mackey said on an earnings call. “That was nice, but we don’t anymore.”
Organic meats and produce, especially healthier foods like kale and quinoa, continue to rise in popularity in the US, and now mainstream rivals like Kroger and even Walmart are getting adept at selling them, cutting into Whole Foods’ business.
Quarterly profit was flat at $142 million, while sales rose 9.7 percent to $3.32 billion, missing Wall Street’s forecast for the sixth straight quarter.
The company also forecast that full-year earnings will miss analysts’ expectations. Shares plummeted $9.02 to $38.93.