United Natural Foods, Inc. ( UNFI ) shares are trading lower on Wednesday.

United Natural reported second-quarter adjusted earnings per share of $0.07, beating the analyst consensus of $(0.01) loss. 

Quarterly revenues of $7.775 billion missed the street view of $7.873 billion.

Net sales decreased 0.5% year over year, primarily driven by a decline in unit volumes, which was partially offset by inflation and new business with existing customers.

Gross profit in the second quarter was $1 billion, a decrease of 3.2% year over year. Quarterly gross margin of 13.3% was lower than 13.7% in the year-ago period.

Adjusted EBITDA for the second quarter was $128 million compared to $181 million for the second quarter of fiscal 2023.

Total outstanding debt, net of cash, was $2.16 billion at the end of the second quarter, reflecting a decrease of $124 million compared to the end of the first quarter.

“We are making steady progress on the multiple work-streams underlying both our near-term and longer-term transformation into a more efficient and effective partner to our customers, while we also enhance profitability and long-term shareholder value creation,” said Sandy Douglas, UNFI’s Chief Executive Officer.

United Natural Foods ( UNFI ) also announced that Giorgio Matteo Tarditi has been named President and Chief Financial Officer, effective April 15. He succeeds John W. Howard, its current Chief Financial Officer, who will leave the company following a transition period.

Outlook: United Natural Foods ( UNFI ) narrowed FY24 adjusted EPS guidance from $(0.88)-0.38 to $(0.56)-0.06 versus $0.04 estimate.

The company narrowed FY24 sales guidance from $30.90 billion-$31.50 billion to $30.50 billion-$31.00 billion versus the $31.01 billion estimate.

United Natural Foods ( UNFI ) expects FY24 Adjusted EBITDA of $475 million- $525 million from the prior estimate of $450 million-$550 million.

Prior Action: UNFI shares are trading lower by 14.3% to $12.74 on the last check Wednesday.