[1]With shares down 16% from yesterday’s closing, The Fresh Market (TFM[2]) 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.
From Reuters:[3]
Fresh Market said it expects earnings[4] 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. [5]Even Fresh Market competitor Whole Foods (WFM[6]) 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.[7]