Whole Foods shares fall 12%

US-based Whole Foods Market Inc. shares sank 12% this week, possible due to the US food price increase of 0.9% in April, the largest seen since 1990. Whole Foods, the largest US organic grocery chain, is dealing with more price-strapped consumers, who are paying more at the gas pump and more for food.

However, for the quarter ending April 13, Whole Foods reported comparable-store sales, for stores open at least one year, increased 6.7% from a year-earlier.  So why the fall in stock prices? Citigroup analyst Gregory Badishkanian said investors probably expected Whole Foods to report comparable-store sales growth of between 8% and 9%. For its fiscal year 2008, which ends in September, Whole Foods backed its comparable-store sales forecast calling for growth between 7.5% and 9.5%.

In recent years, Whole Foods had grown its comparable-store sales at rates in the high single digits to low double digits; but analysts said it looks like that growth is easing as the company rebrands Wild Oats stores acquired last August and opens new stores.

"We are continuing to produce higher sales, comps and sales per square foot than our public competitors, and the results in our core stores are strong," CEO John Mackey said in a statement.

(Source: CNNMoney.com)