United Natural Foods' stock slides after company swings to loss amid lower inflation benefits

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Grocery wholesaler swings to loss and posts sales that lag estimates.

United Natural Foods Inc.’s stock UNFI, +0.37% tumbled 6.6% in premarket trade Tuesday, after the grocery wholesaler swung to a fiscal fourth-quarter loss and posted sales that lagged estimates. The company had a loss of $68 million, or $1.15 a share, for the quarter to July 29, after income of $39 million, or 63 cents a share, in the year-earlier quarter. It’s adjusted per-share loss came to 25 cents, narrower than the 39 cent loss consensus of FactSet analysts. Sales rose to $7.

“While we grew sales across all of our customer channels, profitability declined primarily due to a decrease in inflation driven procurement gains and elevated shrink. We expect further headwinds as we continue to cycle elevated inflationary benefits during the first half of fiscal 2024,” CEO Sandy Douglas said in a statement. The company is now expecting fiscal 2024 per-share earnings to range from a loss of 88 cents to EPS of 38 cents, compared with a FactSet consensus for EPS of $1.94.

 

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