While Macquarie Research says that Whole Foods Market is still a “best-in-class operator with an iconic brand,” Goldman Sachs says that the landscape is getting more competitive, which will mean less revenue for the company.
In 2015, Whole Foods was found to be overcharging some customers because of problems with the company’s weight and labeling practices. While the company issued an apology and a generous refund policy, their comparable sales never recovered and were still a problem at the Q2 earning call in May.
As Whole Foods reports its 2016 Q3 earnings tomorrow after the market close, we’ll see if the company has managed to turn things around. ES