Whole Foods Market Inc., the largest U.S. natural-foods grocer, said first-quarter profit fell because of costs related to its purchase of Wild Oats Markets Inc.
Net income dropped 27 percent to $39.1 million, or 28 cents a share in the 16 weeks ended Jan. 20 from $53.8 million, or 38 cents, a year earlier, said Whole Foods, based in Austin, Texas, in a statement Tuesday. Sales rose 31 percent to $2.46 billion.
The retailer acquired Wild Oats in August for $565 million to compete against Safeway Inc. and Trader Joe's Co. as consumers, hurt by higher gas prices and the worst U.S. housing market in a quarter century, rein in spending.
Whole Foods fell 80 cents, or 2 percent, to close at $38.32 in Nasdaq Stock Market composite trading on Tuesday.