United Natural Foods' stock tanks 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 tumbled 20% in premarket trade Tuesday, after the grocery wholesaler swung to a fiscal fourth-quarter loss and posted sales that lagged estimates.

“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.

Sales are expected to range from $30.9 billion to $31.5 billion, compared with a consensus of $31.1 billion. Blake comes to the role after years of experience in the investment industry as a leader at State Street Global Advisors.

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