UNFI’s net sales growth slips as supply chain efficiencies improve

Core Insights - UNFI is on track to meet its full-year outlook for fiscal year 2026 despite a second consecutive quarter of declining net sales [3][8] - The natural segment saw an 11% increase in net sales, while conventional sales declined by 12% due to the closure of a distribution center [3][8] - The company is enhancing supply chain solutions and has implemented a daily management program in 34 distribution centers [4] Financial Performance - UNFI reported net sales of $7.8 billion for Q1 fiscal 2026, a slight decrease of less than half a percentage point year-over-year [8] - The operating expense rate improved to 12.7% of net sales from 12.9% the previous year, reflecting efficiency initiatives [5][8] - The full-year outlook projects net sales between $31.6 billion and $32 billion, net income up to $50 million, and adjusted EBITDA between $630 million and $700 million [6] Operational Efficiency - The number of cases moving through distribution centers increased by 2% year-over-year and nearly 10% over two years [6] - UNFI's effectiveness and efficiency initiatives, including network optimization and strategic automation investments, are contributing to improved operational metrics [5]