With shares down 16% from yesterday’s closing, The Fresh Market (TFM) is not only cutting its earnings forecast again but is now nervously watching US consumer spending in the months ahead.
Its recent earnings, while still positive, missed analysts expectations — and internal ones as well — which is putting TFM stock in downward movement.
The earnings decline isn’t just short term either — TFM expects it to continue.
On a call with media and investors, CFO Jeff Ackerman said the trend would likely go through Q4.
“The primary driver for the adjustment in guidance is really the top line … we are expecting a lower comparable sales rate for the balance of the year,” Ackerman said.
Fresh Market said it expects earnings of $1.42-$1.47 per share in 2013, down from $1.50-$1.55 per share. Analysts on average expected a profit of $1.53, according to Thomson Reuters I/B/E/S.
Fresh Market said its net income rose to $11.1 million, or 23 cents per share, in the third quarter ended October 27, from $10.9 million, or 23 cents per share, a year earlier. Analysts on average were expecting a profit of 26 cents per share.
Sales rose 13 percent to $364.5 million, missing the average analyst estimate of $373.8 million.
Consumer spending has hit a number of other retailers as well of late. Even Fresh Market competitor Whole Foods (WFM) has had a stock drop earlier this month, but is seen as rebounding. WFM stock is up 23% year to date.
TFM stock is up some 4% year to date.
Its full earnings report can be found here.