United Natural Foods reports a 4.2% revenue decline to $7.7 billion, below the $7.8 billion estimate, despite higher profitability.
United Natural Foods (UNFI) shares fell 12.2% after reporting fiscal third-quarter revenue of $7.7 billion, down 4.2% year-over-year and missing estimates of $7.8 billion. The decline included a 450 basis point impact from optimization actions, such as closing a distribution center in Allentown, Pa., as the company refocuses on profitable channels.
Adjusted EBITDA rose 16.6% to $183 million, while adjusted earnings per share surged from $0.44 to $0.77, matching expectations. CEO Sandy Douglas attributed the results to disciplined execution of the company’s value creation strategy, which prioritizes profitability and cash flow.
Management narrowed full-year revenue guidance to $31.1 billion-$31.3 billion, down from the prior range of $31 billion-$31.4 billion, signaling continued focus on efficiency over top-line growth.