United Natural Foods | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 7.84 B

Revenue: As of FY2026 Q1, the actual value is USD 7.84 B, missing the estimate of USD 7.908 B.

EPS: As of FY2026 Q1, the actual value is USD -0.06, missing the estimate of USD 0.2667.

EBIT: As of FY2026 Q1, the actual value is USD 53 M.

Segment Revenue

• Natural Segment: Net sales increased by 10.5% to $4,240 million for the first quarter of fiscal 2026, driven by increased unit volumes and inflation.
• Conventional Segment: Net sales decreased by 11.7% to $3,325 million, primarily due to the transition out of the Allentown, Pennsylvania distribution center.
• Retail Segment: Net sales decreased by 5.5% to $554 million, impacted by a decrease in identical store sales and store closures.

Operational Metrics

• Gross Profit: Increased by $13 million to $1,051 million, with a gross profit margin of 13.4%, up from 13.2% in the previous year.
• Operating Expenses: Decreased by $19 million to $996 million, representing 12.7% of net sales, down from 12.9%.
• Operating Income: Increased by $14 million to $19 million, compared to $5 million in the previous year.
• Net Loss: Improved to $4 million from $21 million in the previous year.

Cash Flow

• Net Cash Used in Operating Activities: Improved by $72 million, resulting in a net cash usage of $38 million.
• Net Cash Used in Investing Activities: Decreased by $31 million to $16 million, primarily due to lower capital expenditures.
• Net Cash Provided by Financing Activities: Decreased by $106 million to $48 million, reflecting lower net borrowings.

Unique Metrics

• Adjusted EBITDA: Increased by $33 million to $167 million, driven by improvements in the Natural and Conventional segments.

Future Outlook and Strategy

• Core Business Focus: The company is focused on optimizing its distribution network, managing capital spending, and improving its cost structure to enhance free cash flow and reduce debt.
• Non-Core Business: The company plans to continue investing in its Retail segment, including customer-facing initiatives and technology improvements.
• Priority: The company aims to improve its financial leverage and reduce outstanding debt while optimizing performance and profitability through strategic initiatives.