Whole Foods co-CEO defends turnaround plan

Organic foods pioneer Whole Foods (WFM) has, in many ways, become a victim of its own success.

After a strong run to its all-time high of $65 a share in October 2013, its value has been cut by more than half.

Whole Foods' leadership in the natural food category has paved the way for others to expand there -- big-box retailers like Costco (COST) Target (TGT), traditional grocers like Kroger (KR) and privately-held Wegmans, and convenience stores like Walgreens (WBA) have all gone organic. Specialty organic rivals have flexed their muscles as well, with names like like Sprouts Farmers Market (SFM) and privately-held Trader Joe’s growing rapidly. And Whole Foods' stock is feeling the pressure -- shares are down almost 50% in the last year.

Austin, Texas-based Whole Foods reported fiscal first-quarter earnings of 46 cents, beating analysts' estimates by 6 cents, and now expects a profit of at least $1.53 in 2016, ahead of previous forecasts. Most notably, management highlighted the rollout of its first "365 by Whole Foods Market" value concept coming this spring, the launch of mobile payments, increased exclusive brand sales, more discounts, and a broadening Instacart offering.

Investors are still sorting through the company’s key strategic moves -- including its nine-point turnaround plan outlined in November that highlighted everything from reducing costs to rolling out digital strategies and making headway on the new 365 by Whole Foods store concept.

In its latest quarter same-store sales, while better than expected, were down 1.8%.

Co-CEO Walter Robb said the company is making progress in turning the business around: “We improved our cost structure, stepped up our value efforts, and are excited to announce today the national launch of digital coupons within our mobile app,” he said.