In its third quarter 2005 earnings conference call with financial analysts on Friday, the company noted that its net sales rose 11.1% to $278.5 million, with president and CEO Perry Odak pointing out that the 6.1% comp-store sales increase was the highest of any quarter this year. In addition to its sales promotional efforts, Wild Oats attributed the overall sales gain to an increase of 8% in total square footage, to 2.56 million sf in its 113 stores. For the first nine months of the year, it added five new stores, relocated two and remodeled two.

In response to analysts' questions about the company's real estate strategy, Odak said that the new Wild Oats real estate program is "focusing on locations that have the highest profile in terms of propensity to buy organic and all-natural." The company's real estate approach in the past has been "to build more density in our existing markets," Odak explained, which the chain has done by expanding in places like Salt Lake City, for example, where it grew from two to five stores.

In its Henry's chain, Wild Oats opened one new store in the third quarter, and thus far in the fourth quarter it has already opened its eighth and final store for 2005, a Henry's in Rancho Cucamonga, CA. It has 16 leases or letters of intent signed for new stores opening in 2006 and 2007.

Thanks to its improved financial results for the quarter and the year, Wild Oats has revised its earnings estimate for the year to be in the range of four cents to seven cents for the full year, compared with its previous estimate of two cents to four cents per share. The company's profitability thus far this year has been reduced by a number of one-time items, including Hurricane Katrina, restructuring charges and asset write-offs.