United Natural Foods(US:UNFI) ZACKS·2025-12-03 15:55Core Insights - United Natural Foods, Inc. (UNFI) reported improved adjusted earnings of 56 cents per share for Q1 fiscal 2026, surpassing the Zacks Consensus Estimate of 39 cents, and up from 16 cents in the same quarter last year [1][9] - However, net sales decreased by 0.4% year over year to $7,840 million, missing the consensus estimate of $7,886 million, primarily due to lower conventional sales and strategic store closures [2][9] Financial Performance - The natural segment experienced a sales growth of 10.5% year over year, while the conventional and retail segments saw declines of 11.7% and 5.5%, respectively [3] - Gross profit increased by 1.3% year over year to $1,051 million, with a gross profit margin of 13.4%, up 20 basis points from the previous year [4] - Operating expenses decreased to $996 million from $1,015 million year over year, representing 12.7% of sales compared to 12.9% in the prior year, reflecting cost-saving initiatives [5] Cash Flow and Debt - The company had total liquidity of $1.33 billion as of November 1, 2025, with free cash flow used amounting to $54 million, a significant improvement from $159 million in the prior year [6] - Total outstanding debt, net of cash, was $1.90 billion, with a net leverage ratio of 3.2x as of November 1, 2025 [7] Guidance and Projections - UNFI reaffirmed its fiscal 2026 outlook, expecting net sales between $31.6 billion and $32 billion [8] - Adjusted EPS is projected to be between $1.50 and $2.30, with adjusted EBITDA expected to be between $630 million and $700 million [10]