If the third time wasn’t a charm, maybe the fourth will be. Unfortunately, it was not for United Natural Foods investors. 🙁
We last covered the country’s largest organic and natural food wholesale in December, March, and June, when its stock plummeted after reporting earnings. And today, that trend continued, with shares falling another 27% after its fiscal fourth-quarter results disappointed.
The company’s adjusted loss per share of $0.25 compared to $1.27 in earnings per share last year but was still narrower than the $0.39 loss expected. Sales growth remains dismal, rising by roughly 2% YoY to $7.417 billion and missing the consensus forecast by about $50 million. 🔺
Although sales grew across all its customer channels, profitability remained pressured by a decrease in inflation-driven procurement gains and elevated shrink. Executives expect those headwinds to continue into the first half of fiscal 2024.
As a result, the company’s fiscal 2024 forecast came in well below expectations. It expects a loss per share of $0.38 to $0.88 compared to a consensus call for $1.94 per share in earnings. Sales of $30.9 to $31.5 billion straddled the consensus view of $31.1 billion. 👎
Volume headwinds persist on the demand side of things as consumers continue to adjust their discretionary spending. Higher costs across their household budgets, rising gas prices, and economic uncertainty are all things impacting their decisions at the grocery store. 🛒
$UNFI shares plummeted to a three-year low as the news spoiled investors’ remaining gains. 📉
