UNFI - United Natural Foods stock slides over 15% after earnings report as margins weaken

• United Natural Foods ( NYSE: UNFI ) stock slid 15.5% on Wednesday as the food wholesaler's gross margin weakened in Q1, while its earnings were largely in line with expectations .
• More than 1.2M shares changed hands as of 2.24 pm ET vs. average trading volume of 445.4K.
• United Natural ( UNFI ) reported Q1 gross margin of 14.55% vs. 14.89% in Q1 2022 and 14.49% in Q4 2022.
• Adj. EPS was $1.13 vs. $1.10 in Q1 2022, reflecting adj. EBITDA growth and lower interest expense.
• Revenue grew 7.1% Y/Y to $7.5B, helped by higher inflation, net new customers wins, and deeper sales penetration with existing customers. Sales were partially offset by expected decline in unit volume consistent with the overall industry.
• The company also reaffirmed its guidance.
• "Looking ahead, our customer pipeline is robust, with new customer acquisition and expansion from existing customers expected in H2 of the year," said CEO Sandy Douglas.
• Shares of United Natural ( UNFI ), which posted two straight monthly gains in October and November, fell 9.4% in the last six months.

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