AUSTIN, Texas — Natural and organic grocery chain Whole Foods Market Inc. reported Wednesday that its fiscal first-quarter profit jumped 24 percent on stronger revenue. But the company narrowed its revenue forecast and said its earnings growth may slow through the remainder of the fiscal year as it faces higher store-opening costs and plans to increase the number of lower-priced products in its stores to remain competitive with other grocers.
The news sent Whole Foods' stock down 6 percent in after-hours trading Wednesday.
Whole Foods, based in Austin, Texas, struggled when the recession hit and shoppers cut back on their spending. The company was able to make a comeback after it cut costs, slowed growth and began offering more value-priced items to attract shoppers. The grocery industry, however, remains highly competitive.
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