UPDATE 3-Whole Foods' profit, forecast beats Street
* Q1 EPS 20 cents vs average forecast 14 cents
* Q1 same-store sales down 4 pct - first in co's history
* 2009 EPS 71 cents-76 cents vs Wall St view 62 cents
* Shares rise 6 pct after-hours (Adds CEO quotes, legal costs, capex detail; updates shares)
SAN FRANCISCO, Feb 18 (Reuters) - Whole Foods Market Inc(WFMI.O) posted a quarterly profit that beat Wall Street estimates and forecast 2009 earnings ahead of analyst expectations, sending its shares up nearly 6 percent.
Despite the company's first-ever decline in same-store sales, investors cheered evidence that the high-end grocery chain was finding ways to reduce costs as customers cut back on shopping trips and pare more expensive items from their lists.
"We are demonstrating we can operationally adjust to lower sales volumes," Chief Executive John Mackey said.
In the midst of a recession, Whole Foods -- which specializes in organic, natural and gourmet products -- has cut jobs, reduced its store opening plans, pared back its capital expenditure budget and suspended its cash dividend.
The company, nicknamed by some as "whole paycheck", also said it was working to provide more value to its customers, particular in its perishable food departments.
Mackey noted that the sale price of organic apples was about half the price of a year ago.
Stores now have displays comparing prices versus competitors and run contests where customers can win a basket full of merchandise if they correctly guess its price.
"We believe we are starting to change the dialogue about our prices, and hopefully the perception as well," Mackey said during a call with analysts.
Still, executives acknowledged the difficult economic times, which were sending consumers to lower-priced grocers.
"Competition continues to be a factor as retailers fight over fewer food dollars being spent," Mackey said.
SAME-STORE SALES DROP Continued...
