Whole Foods 2011 Annual Report Download - page 27

• The Company’ s Board of Directors reinstated a $0.10 quarterly cash dividend to shareholders and we made three
dividend payments to shareholders totaling $52.6 million; and
• We had cash, restricted cash, and investments totaling approximately $799.1 million at the end of the fiscal year.
Also during fiscal year 2011, we began opening in-store Wellness Clubs. Our Wellness Club offerings include nutrition
courses; skill-building classes; culinary classes; Supper Clubs and special events; coaching and support; a wellness
assessment tool; and access to benefits from a growing local network of community businesses. Members also receive a 10%
discount on thousands of designated healthy foods when they shop in stores where Wellness Clubs are located. We are
learning and evolving with each Club we open. While still very early, we are pleased with the initial results we are seeing.
We hope customers will continue to embrace the concept and that we can expand our offering to more customers in the
future.
Outlook for Fiscal Year 2012
The following table provides guidance for fiscal year 2012:
Sales growth 13% – 15%
Identical store sales growth 6.5% – 8.5%
Diluted earnings per share $2.21 – $2.26
Diluted earnings per share growth 15% – 17%
Weighted average square footage growth 7% – 8%
Fiscal year 2012 will be a 53-week year, with the extra week falling in the fourth fiscal quarter. The Company estimates the
impact on earnings from the extra week to be $0.06 per share. On a 52-week to 52-week basis, the company expects total
sales growth of 11% to 13% and earnings per share growth of 12% to 14%.
The Company expects capital expenditures for fiscal year 2012 to be in the range of approximately $410 million to $460
million, which includes the opening of 24 to 27 new stores. The Company is committed to producing cash flows from
operations in excess of its capital expenditure requirements on an annual basis, including sufficient cash flow to fund the 62
stores in its current development pipeline.
Results of Operations
The following table sets forth our statements of operations data expressed as a percentage of total sales for the fiscal years
indicated:
2011 2010 2009
Sales 100.0% 100.0% 100.0%
Cost of goods sold and occupancy costs 65.0 65.2 65.7
Gross profit 35.0 34.8 34.3
Direct store expenses 26.0 26.4 26.7
General and administrative expenses 3.1 3.0 3.0
Pre-opening expenses 0.4 0.4 0.6
Relocation, store closure and lease termination costs 0.1 0.1 0.4
Operating income 5.4 4.9 3.5
Interest expense - (0.4) (0.5)
Investment and other income 0.1 0.1 -
Income before income taxes 5.5 4.6 3.1
Provision for income taxes 2.1 1.8 1.3
Net income 3.4 2.7 1.8
Preferred stock dividends - 0.1 0.3
Income available to common shareholders 3.4% 2.7% 1.5%
Figures may not sum due to rounding.
Sales
Sales totaled approximately $10.11 billion, $9.01 billion and $8.03 billion in fiscal years 2011, 2010 and 2009, respectively,
representing increases of 12.2%, 12.1% and 1.0% over the previous fiscal years, respectively. Comparable store sales
increased approximately 8.5% and 7.1% in fiscal years 2011 and 2010, respectively, and decreased approximately 3.1% in
fiscal year 2009. Identical store sales increased approximately 8.4% and 6.5% in fiscal years 2011 and 2010, respectively,
and decreased approximately 4.3% in fiscal year 2009. As of September 25, 2011, there were 298 locations in the
comparable store base. Identical store sales in fiscal years 2011, 2010 and 2009 exclude from the comparable calculation 6, 6
and 12 store relocations, respectively, and 1, 2 and 3 remodels with major expansions, respectively, during portions of each
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