United Natural Foods (UNFI) released its third-quarter fiscal 2026 results, showing a 4.2% decrease in net sales to $7.72 billion for the 13 weeks ended May 2, 2026. This figure missed the consensus estimate of $7.80 billion. The decline was attributed to a 13.6% drop in Conventional segment sales to $3.14 billion and a 10.1% fall in Retail sales to $515 million, partially offset by a 4.4% growth in the Natural segment to $4.34 billion. The company noted that approximately 450 basis points of the overall sales decrease were due to planned optimization actions, including the exit of its Allentown, Pennsylvania distribution center.
Despite the revenue miss, UNFI reported a net income of $33 million, or $0.52 per diluted share, a significant improvement from a net loss of $7 million, or -$0.12 per diluted share, in the same period last year. Adjusted EPS came in at $0.77, matching analyst estimates. Adjusted EBITDA increased by 16.6% to $183 million from $157 million a year earlier, with the gross profit margin widening to 13.6% of net sales from 13.4%.
For the full fiscal year 2026, UNFI reiterated its guidance midpoints while narrowing ranges. The company now expects net sales between $31.1 billion and $31.3 billion, and EPS between $0.90 and $1.10. Adjusted EPS is projected to be between $2.40 and $2.60, and Adjusted EBITDA between $685 million and $705 million. These updated full-year guidance midpoints for revenue and EPS fell short of Wall Street consensus estimates, leading to an over 11% tumble in UNFI's shares in premarket trading.
CEO Sandy Douglas emphasized the company's disciplined execution of its value creation strategy, highlighting underlying sales growth, higher profitability, and strong free cash flow. He also pointed out that reported sales were influenced by planned optimization actions and the unwind of a short-term project, suggesting that, without these factors, sales aligned with low-single-digit growth in its target market. Management expressed confidence in a return to sales growth for the broader wholesale business in fiscal 2027.
