Financial Performance - Net sales increased by 4.9% to $8.2 billion compared to the second quarter of fiscal 2024[6] - Adjusted EBITDA rose by 13.3% to $145 million, reflecting continued operational improvements[6] - Free cash flow improved by 66.4% to $193 million, driven by net cash provided by operating activities of $247 million[6] - Net loss decreased to $(3) million, with loss per diluted share (EPS) of $(0.05), compared to a loss of $(15) million and EPS of $(0.25) in the prior year[6][12] - The company reported a net loss attributable to United Natural Foods, Inc. of $(3) million for the 13-week period ended February 1, 2025, compared to $(15) million in the same period of 2024, reflecting a 80% improvement[31] - The net loss attributable to United Natural Foods, Inc. for the 26-week period ended February 1, 2025, was $24 million, compared to a net loss of $54 million for the same period in 2024[22] - Adjusted EBITDA for the 13-week period ended February 1, 2025, was $145 million, up 13.3% from $128 million in the same period of 2024[27] - Adjusted EBITDA for the 26-week period is expected to be used for internal projections and comparisons with fiscal 2024[20] - The adjusted net income for the 26-week period ended February 1, 2025, was $23 million, compared to $2 million for the same period in 2024, indicating a significant increase of 1,050%[31] Debt and Liquidity - The net debt to Adjusted EBITDA ratio declined to 3.7x, a reduction of 0.6x over the past 12 months[6] - Total liquidity as of February 1, 2025, was approximately $1.31 billion, consisting of $44 million in cash and $1.27 billion in unused capacity[13] - The net carrying value of debt and finance lease liabilities as of February 1, 2025, was $2,046 million, down from $2,161 million as of January 27, 2024, indicating a reduction of 5.3%[33] - Interest expense for the 13-week period ended February 1, 2025, was $38 million, a decrease of 5% from $40 million in the same period of 2024[27] Operational Efficiency - Operating expenses as a percentage of net sales decreased to 12.6%, down from 13.0% in the prior year[9] - Capital expenditures for the 26-week period were $103 million, down from $141 million in the prior year, indicating a focus on cost management[25] - Payments for capital expenditures for the 13-week period ended February 1, 2025, were $54 million, down from $67 million in the same period of 2024, reflecting a decrease of 19.4%[37] - The company is focusing on a product-centered realignment to enhance customer service and streamline operations[3] Future Outlook - The company is raising its full-year outlook for net sales to between $31.3 billion and $31.7 billion[14] - Adjusted EPS is expected to be between $0.70 and $0.90, up from the previous outlook of $0.40 to $0.80[14] - The adjusted effective tax rate for fiscal 2025 is estimated at 26%, compared to the actual rate of 21% for fiscal 2024[38] - The company plans to continue utilizing non-GAAP financial measures to provide better visibility into its operating performance and investment expenditures[20] Restructuring and Expenses - The company incurred restructuring, acquisition, and integration-related expenses of $9 million for the 13-week period ended February 1, 2025, compared to $4 million in the same period of 2024, marking a 125% increase[31]

Group 1: Earnings Expectations - United Natural Foods, Inc. (UNFI) is expected to report growth in both revenue and earnings for the second quarter of fiscal 2025, with revenue estimated at $7.96 billion, reflecting a 2.3% increase year-over-year [1] - The consensus estimate for earnings per share is 18 cents, a significant rise from 7 cents reported in the same quarter last year [1] - UNFI has demonstrated a trailing four-quarter earnings surprise of 553.1% on average, indicating strong past performance [1] Group 2: Operational Performance - The company has shown growth and operational resilience, driven by strong demand in its wholesale segment and a focus on consumer trends favoring natural and organic products [3] - Strategic initiatives such as expanding the customer base, optimizing the distribution network, and investing in automation have improved efficiency and market penetration [3] - Lean management practices have enhanced operational effectiveness, aligning supply with customer needs and driving cost savings [3] Group 3: Challenges and Risks - UNFI is facing challenges in its Retail business, struggling to retain market share in a competitive environment [4] - There is sustained margin pressure due to an unfavorable customer and product mix, along with rising operational costs, which are impacting profitability [4] - The continuation of these trends poses a threat to UNFI's fiscal second-quarter performance [4] Group 4: Earnings Prediction Model - The current model does not predict a definitive earnings beat for UNFI, as it holds a Zacks Rank of 3 and an Earnings ESP of 0.00% [5]

Group 1 - United Natural Foods, Inc. (NYSE: UNFI) is scheduled to report its fiscal Q2 earnings on March 11 [1] - The analysis indicates a focus on long-term investment strategies, particularly valuing a mix of growth, value, and dividend-paying stocks [1] - The investor profile suggests a preference for value stocks, with occasional options trading [1]

Group 1 - United Natural Foods (UNFI) is a notable stock in the Consumer Staples sector, currently holding a Zacks Rank of 1 (Strong Buy) due to improved analyst sentiment and a 19.2% increase in full-year earnings estimates over the past 90 days [3] - UNFI has achieved a year-to-date return of approximately 17.1%, significantly outperforming the average return of 1.1% for Consumer Staples companies [4] - The company belongs to the Food - Miscellaneous industry, which includes 43 stocks and currently ranks 170 in the Zacks Industry Rank, with the industry experiencing an average loss of 3.5% this year [6] Group 2 - US Foods (USFD) is another stock in the Consumer Staples sector that has outperformed the sector, with a year-to-date increase of 3.6% [4] - US Foods has a Zacks Rank of 2 (Buy), with a slight increase of 0.1% in its consensus EPS estimate for the current year over the past three months [5] - Both United Natural Foods and US Foods are positioned well within the Consumer Staples sector and are expected to continue their strong performance [7]

Core Insights - United Natural Foods, Inc. (UNFI) is restructuring its wholesale business by separating its natural and organic divisions to strengthen market position and streamline operations [1][2] - The separation aims to enhance customized value for customers and suppliers while driving profitable growth [2][5] - Specialized sales teams will support the new divisions, focusing on the unique needs of the 30,000 retail locations served by UNFI [3] Operational Strategy - UNFI will establish capability centers of excellence in areas like supply chains and private brands to support sales leaders and create customized growth programs [4][6] - Lean management principles are being implemented to drive cost savings and improve efficiency, including the optimization of the distribution network [8] Performance Metrics - The natural and organic business segment is experiencing impressive growth, with private brand offerings showing growth rates from mid-single digits to mid-teens [7] - UNFI has closed underperforming facilities and transitioned operations to larger centers, streamlining logistics while retaining most business [9] - The company's shares have gained 47% in the past three months, contrasting with a 9.4% decline in the industry [9]

Core Viewpoint - United Natural Foods (UNFI) has shown strong performance in its first-quarter earnings for fiscal 2025, surpassing estimates and demonstrating year-over-year growth, driven by a strategic plan focused on operational efficiency and customer value [2][4]. Financial Performance - Adjusted earnings for the quarter were 16 cents per share, exceeding the Zacks Consensus Estimate of 1 cent, compared to an adjusted loss of 4 cents in the same period last year [3]. - Net sales increased by 4.2% year over year to $7,871 million, surpassing the Zacks Consensus Estimate of $7,619 million, supported by a 2% rise in wholesale unit volumes [4]. - Gross profit rose 0.8% year over year to $1,038 million, with a gross profit margin of 13.2%, down 40 basis points from the previous year [5]. Cost and Margin Analysis - Operating expenses were $1,015 million, down from $1,023 million in the prior year, representing 12.9% of sales compared to 13.5% previously, attributed to cost-saving initiatives [6]. - Adjusted EBITDA was $134 million, reflecting a 14.5% increase from $117 million in the year-ago quarter, marking the fifth consecutive quarter of growth [7]. Financial Health - Total liquidity stood at $1.17 billion as of November 2, 2024, with total outstanding debt reaching $2.23 billion, a $164 million increase from the previous quarter [8]. Guidance for Fiscal 2025 - The company anticipates net sales of $30.6-$31 billion for fiscal 2025, an increase from earlier expectations of $30.3-$30.8 billion [9]. - Adjusted EBITDA is projected to be $530-$580 million, with adjusted earnings expected between 40 cents and 80 cents, up from the previous range of 20 cents to 80 cents [10]. Market Sentiment - Despite recent positive performance, there has been a downward trend in estimates, with a consensus estimate shift of -5.79% [12]. - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for above-average returns in the coming months [14].

Core Insights - United Natural Foods, Inc. (UNFI) is restructuring its wholesale business by separating its natural and organic divisions to strengthen market position and streamline operations [1][2] - The separation aims to enhance customized value for customers and suppliers while driving profitable growth [2][5] Business Strategy - UNFI will realign its commercial wholesale organization into two divisions: Conventional Grocery Products and Natural, Organic, Specialty & Fresh Products [2] - Specialized sales teams will support each division, focusing on the unique needs of the 30,000 retail locations served [3] Operational Efficiency - UNFI plans to establish capability centers of excellence in areas like supply chains and private brands to support sales leaders and create customized growth programs [4] - Lean management principles are being implemented to drive cost savings and improve efficiency, including the optimization of the distribution network [8] Growth Potential - The natural and organic business segment is experiencing impressive growth due to increased consumer demand for healthier products, with private brand growth rates ranging from mid-single digits to mid-teens [7] - UNFI has closed underperforming facilities and transitioned operations to larger centers, streamlining logistics while retaining most business [9] Market Performance - UNFI's shares have gained 47% in the past three months, contrasting with a 9.4% decline in the industry [9]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum, aiding in identifying securities with high potential for market outperformance [2][3] Zacks Style Scores - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies attractive stocks using financial ratios like P/E and Price/Sales [3] - Growth Score assesses a company's financial health and future outlook through earnings and sales projections [4] - Momentum Score evaluates price trends and earnings estimate changes to identify favorable buying opportunities [5] - VGM Score combines all three styles to highlight stocks with the best overall potential [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - The combination of Zacks Rank and Style Scores helps investors select stocks with the highest probability of success [9][10] Company Spotlight: United Natural Foods (UNFI) - United Natural Foods, Inc. is a leading distributor of natural and organic products in the U.S. and Canada, offering around 250,000 products across various categories [11] - UNFI holds a 1 (Strong Buy) rating on the Zacks Rank and has a VGM Score of A, indicating strong investment potential [12] - The company has seen a 13.6% increase in share price over the past four weeks, with upward revisions in earnings estimates from analysts [12] - UNFI's average earnings surprise stands at an impressive 553.1%, further solidifying its attractiveness to investors [12][13]

In less than a year, United Natural Foods (NYSE: UNFI ) has run from under $10 to $27 a share, providing an exceptional return for investors. Given the stock has exhibited relatively muted increases in EBITDA over last year’s trough, someAnalyst’s Disclosure: I/we have a beneficial long position in the shares of UNFI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alp ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...