Wild Oats

Wild Oats Markets Inc. (Boulder, Colo.) has reported a 13.1 percent gain in net sales for the second quarter ended July 2, 2005. Same-store sales were up 5.4 percent. Excluding the Company’s Southern California stores, which continued to lap difficult strike-related comparisons through the end of the second quarter, comparable store sales were positive 7.9 percent.

For the first half of fiscal 2005, the natural and organic foods retailer saw sales gain 9.1 percent.

Wild Oats opened one new store and relocated one store in the quarter.

“We are very pleased with the continued strengthening of our sales momentum throughout the first half of the year,” said president and ceo Perry Odak. “Now that we’re into the third quarter and the lapping of the Southern California grocery strike is behind us, we expect our comparable store sales to be solid throughout the remainder of the year. Additionally, our Wild Oats branded products rollout continues to exceed our expectations and is producing very strong sales, which is also contributing to our gross margin improvement.”

Wild Oats opened one new Henry’s store in Temecula, Calif. and relocated a Wild Oats store in the Portland, Ore. market in the second quarter of 2005. To date, these two new store openings have produced the strongest grand opening results for the Company in both the Henry’s and Wild Oats chains. Wild Oats Markets plans to open an additional three new Henry’s stores throughout the remainder of the year, bringing the total number of new stores opened in 2005 to nine. The company also completed the major remodeling of two San Diego Henry’s stores in July and expects it will complete major remodels of five additional stores by the end of the year.

As previously announced, Wild Oats is pursuing additional opportunities to offer its Wild Oats branded products in other retail environments. To this end, in the second quarter, Wild Oats opened the first of its five-store test of a Holistic Health boutique in the Plymouth, Mass. Stop & Shop store. The second Wild Oats Stop & Shop department will open in the third quarter in Fairfield, Conn.