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◇-owrtorksnzHbgMUw-Lenard(1/23-14:51)No.29854


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Shares of Whole Foods jumped almost 10 percent on May 7 as the company announced strong second-quarter earnings. The organic grocer improved its gross margin by five basis points in the second quarter. This alleviated some concerns by investors that Whole Foods margin would erode as the competition intensified in the organic food space. Additionally, some analysts thought that Whole Foods's investments in price discounts and promotions would hurt its margins. Instead, these investments were offset by a reduction in administrative expenses due to greater economies of scale and strong comparable store sales growth of 6.9 percent.