Whole Foods Market (NASDAQ: WFMI) reported their fiscal second quarter earnings; twelve week sales posted $1.9B in revenue, wow…that’s a lot of tofu! Overall this was a 5.1% decrease in identical store sales. Through expense control measures WFMI increased income from operations by 10% (excluding non-cash impairment charges) producing $173M in cash flow from operations, $74.9M was invested in capital expenditures, of which $60.4M was related to new stores, cash on hand increased to $362.8M and total debt was $743.5M. For the quarter, gross profit decreased 16 bps to 34.7% of sales. G&A expenses improved 57 basis points to 3.1% of sales due to the elimination of G&A expenses at the former Wild Oats home office in Boulder. We would love to hear from the displaced Boulderites…let us know what you are doing now (let TerraCrunch do some online networking for you if needed).

Whole Foods is awaiting final approval of the settlement agreement with the Federal Trade Commission to resolve their antitrust challenge to the Company’s acquisition of Wild Oats Markets, Inc. Under the terms of the agreement, Whole Foods was instructed to sell 32 Wild Oats Markets. The 32 former Wild Oats stores that Whole Foods was ordered to divest comprised 13 currently operating and 19 formerly operating stores. To refresh your memory, on February 21, 2007, Whole Foods and Wild Oats entered into a merger agreement where Whole Foods would acquire 100% of the voting shares of Wild Oats. The total consideration for the transaction was approximately $700M. At the time of the acquisition, Whole Foods operated 194 stores in 37 states and the District of Columbia, and Wild Oats had 74 stores in 24 states.