UNFI & COST Earnings: Disaster & Solid As Usual


Yesterday morning I previewed United Natural Foods (UNFI) and Costco (COST) earnings.

As I said I would, I bought a small position in UNFI heading into earnings this morning – and that proved to be a mistake. The quarter marked the end of UNFI’s fiscal year and they provided terrible guidance for FY24. They expect Adjusted EPS to be between a loss of 88 cents and a 38 cent profit. In other words, FY24 is going to be a lost year for UNFI as they struggle to right the business. Shares lost 27.43% Tuesday on big volume – and now I’m left holding the bag.

COST is a much higher quality company than UNFI and earnings came in solid as usual. Adjusted Comps for the 17 weeks ended September 3, 2023 were +3.8%. Margins – and as a result profitability – look fine as well. Shares are off marginally in the after hours but I’m not worried about COST. UNFI is a different story….

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