Whole Foods Market Inc. (WFMI)

Whole Foods Market's fiscal fourth quarter results were weak, as expected. Excluding store closure costs, the company earned $0.13 per share, matching our estimate. Including those costs, Whole Foods had EPS of $0.01.

More importantly, at least for the near term, Whole Foods Market secured an equity investment of $425 million, which should alleviate any credit-related concerns for the company. Looking ahead to 2009, the company expects sales of $8.3 billion and EPS $0.68-$0.75 including FTC [Federal Trade Commission]-related legal costs and preferred stock dividends.

Macro headwinds continue to pressure consumer spending, and those headwinds are also negatively affecting the company's results. But the company's focus on operational improvements should be a long-term positive, as the company will be better positioned to re-accelerate earnings growth when macro conditions finally improve. We maintain our Buy rating and our target price of $15.