United Natural Foods Returns to Profit Amid Sales Decline

The company posted a profit of $33 million, or 52 cents a share, for the quarter ended May 2, marking a sharp recovery from the $7 million loss recorded during the same period last year. Adjusted earnings per share reached 77 cents, narrowly exceeding analyst projections by a single penny. Revenue, however, dipped 4.2% to $7.72 billion, falling short of the $7.8 billion consensus estimate tracked by FactSet.

Performance varied significantly across product categories. While natural products grew by roughly 4%, the conventional-products segment suffered a 13.6% decline. Management attributed the broader sales slump to the closure of a distribution center in Allentown, Pennsylvania, and the winding down of short-term, project-based work. Operating expenses fell largely due to insurance proceeds and ongoing cost-saving initiatives, allowing the firm to maintain its fiscal guidance for the remainder of the year.