United Natural Foods, Inc. (NYSE:UNFI) shares are trading lower after the company reported mixed second-quarter fiscal 2026 earnings results.
• United Natural Foods stock is among today’s weakest performers. Why is UNFI stock dropping?
Earnings Snapshot
The company reported adjusted earnings per share of 62 cents, beating the analyst consensus estimate of 51 cents.
However, sales of $7.947 billion, down 2.6% year-over-year (Y/Y), missed the Street view of $8.108 billion.
Sales declined owing to an anticipated reduction in conventional sales, on transition out of the Allentown, Pennsylvania, distribution center in the first quarter of fiscal 2026.
Natural channel sales rose 6.7% Y/Y to $4.29 billion, while conventional channel sales fell 12.1% Y/Y to $3.39 billion, and retail sales declined 8.2% Y/Y to $560 million.
Adjusted EBITDA increased 23.4% Y/Y to $179 million in the quarter.
As of Jan. 31, the company had total liquidity of about $1.34 billion. That included $52 million in cash and roughly $1.29 billion of unused capacity under its asset-based lending facility.
Free cash flow totaled $243 million, an improvement from the $193 million in the second quarter of fiscal 2025.
“With a sharpened focus on our growing $90 billion target addressable market, we are working to help differentiating retailers continue to accelerate profitable growth in a dynamic marketplace,” added Sandy Douglas, UNFI’s CEO.
Outlook
United Natural Foods raised FY2026 adjusted EPS guidance to $2.30-$2.70 (from $1.50-$2.30 prior) versus consensus of $2.18.
The company cut sales outlook to $31 billion-$31.4 billion (from $31.6 billion-$32.0 billion) versus the Street view of $31.923 billion.
UNFI Price Action: United Natural Foods shares are trading lower by 4.33% at $37.162 at publication on Tuesday.
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This article United Natural Foods' Mixed Q2 Results, Cuts Sales Outlook originally appeared on Benzinga.com
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