UNFI - Why United Natural Foods Stock Sank as Much as 20.5% This Week
Shares of United Natural Foods (NYSE: UNFI) , a distributor of natural foods in the U.S. and Canada, fell as much as 20.5% this week according to data from S&P Global Market Intelligence . At the start of trading on Friday, March 11, the stock was still off by around 17.5%. The big news out of the company was its fiscal second-quarter 2022 earnings update. On the surface, the numbers didn't seem that bad, but when you dig in a little, there's some possible reasons to be worried about the future.
United Natural Foods posted sales of $7.4 billion in the fiscal second quarter of 2022, up 7.5% from the same quarter of fiscal 2021. That was helped along by robust demand from existing customers and the addition of new customers. On the bottom line, the company reported adjusted earnings of $1.13 per share, down 9.6% from 2021 but above the $1.10 per share analysts had been expecting. All in all, not a bad quarter. The problem is that there were a number of headwinds that aren't expected to go away anytime soon.
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Why United Natural Foods Stock Sank as Much as 20.5% This Week