UNITED NATURAL FOODS INC

Previous wording

United Natural Foods, Inc. and its subsidiaries (“UNFI”, “we”, “us”, “our”, the “Company”) is a leading distributor of grocery and non-food products, and support services provider to retailers in the United States and Canada. We believe we are uniquely positioned to provide the broadest array of products, programs and services to customers throughout North America. Our diversified customer base includes over 30,000 customer locations ranging from some of the largest grocers in the country to smaller retailers. We offer approximately 230,000 products consisting of national, regional and private label brands grouped into the following main product categories: grocery and general merchandise; perishables; frozen foods; wellness and personal care items; and bulk and foodservice products. We believe we are North America’s premier grocery wholesaler with 48 distribution centers and warehouses representing approximately 27 million square feet of warehouse space. We are a coast-to-coast distributor with customers in all 50 states as well as all ten provinces in Canada, making us a desirable partner for retailers and consumer product manufacturers. We believe our total product assortment and service offerings are unmatched by our wholesale competitors. We plan to continue to pursue new business opportunities with independent retailers that operate diverse formats, regional and national chains, as well as international customers with wide-ranging needs. Our business is classified into three reportable segments: Natural, Conventional and Retail.

Current wording

United Natural Foods, Inc. and its subsidiaries (“UNFI”, “we”, “us”, “our”, the “Company”) is a leading distributor of grocery and non-food products, and support services provider to retailers in the United States and Canada. We believe we are uniquely positioned to provide the broadest array of products, programs and services to customers throughout North America. Our diversified customer base includes over 30,000 customer locations ranging from some of the largest grocers in the country to smaller retailers. We offer approximately 230,000 products consisting of national, regional and private label brands grouped into the following main product categories: grocery and general merchandise; perishables; frozen foods; wellness and personal care items; and bulk and foodservice products. We believe we are North America’s premier grocery wholesaler with 47 distribution centers and warehouses representing approximately 27 million square feet of warehouse space. We are a coast-to-coast distributor with customers in all 50 states as well as all ten provinces in Canada, making us a desirable partner for retailers and consumer product manufacturers. We believe our total product assortment and service offerings are unmatched by our wholesale competitors. We plan to continue to pursue new business opportunities with independent retailers that operate diverse formats, regional and national chains, as well as international customers with wide-ranging needs. Our business is classified into three reportable segments: Natural, Conventional and Retail.

Previous wording

The U.S. economy continues to experience economic volatility, which has had, and we expect may continue to have, an impact on consumer confidence and behavior. Consumer spending may continue to be impacted by levels of discretionary income with consumers trading down to a less expensive mix of products for grocery items or buying fewer items. In addition, changes in pricing levels continue to affect our business, and fluctuating commodity and labor input costs may continue to impact the prices of products we procure from manufacturers. We believe our product mix, which ranges from high-quality natural and organic products to national and local conventional brands, including cost conscious private label brands, positions us to serve a broad cross section of North American retailers and end customers, and may lessen the impact of any further shifts in consumer and industry trends in grocery product mix. We are actively monitoring the impacts of the evolving macroeconomic and geopolitical landscape, including rapidly evolving tariff and global trade policies, on all aspects of our business.

Current wording

The U.S. economy continues to experience economic volatility, which has had, and we expect may continue to have, an impact on consumer confidence and behavior. Consumer spending may continue to be impacted by levels of discretionary income with consumers trading down to a less expensive mix of products for grocery items or buying fewer items. In addition, changes in pricing levels continue to affect our business, and fluctuating commodity, fuel and labor input costs may continue to impact the prices of products we procure from manufacturers. We believe our product mix, which ranges from high-quality natural and organic products to national and local conventional brands, including cost conscious private label brands, positions us to serve a broad cross section of North American retailers and end customers, and may lessen the impact of any further shifts in consumer and industry trends in grocery product mix. We continue to monitor the impacts of the evolving macroeconomic and geopolitical landscape, including rapidly evolving tariff and global trade policies and rising fuel costs, on all aspects of our business.

Previous wording

We experienced a mix of inflation and deflation across product categories during the second quarter of fiscal 2026. In the aggregate across our businesses, including the mix of products, management estimates our businesses experienced product cost inflation of approximately three percent in the second quarter of fiscal 2026 as compared to the second quarter of fiscal 2025. Cost inflation and deflation estimates are based on individual like items sold during the periods being compared. Our pricing to our customers is determined at the time of sale, primarily based on the then prevailing vendor listed base cost, and includes discounts we offer to our customers. Changes in merchandising, customer buying habits and competitive pressures create inherent difficulties in measuring the impact of inflation and deflation on Net sales and Gross profit.

Current wording

We experienced a mix of inflation and deflation across product categories during the third quarter of fiscal 2026. In the aggregate across our businesses, including the mix of products, management estimates our businesses experienced product cost inflation of approximately four percent in the third quarter of fiscal 2026 as compared to the third quarter of fiscal 2025. Cost inflation and deflation estimates are based on individual like items sold during the periods being compared. Our pricing to our customers is determined at the time of sale, primarily based on the then prevailing vendor listed base cost, and includes discounts we offer to our customers. Changes in merchandising, customer buying habits and competitive pressures create inherent difficulties in measuring the impact of inflation and deflation on Net sales and Gross profit.

Previous wording

Generally, in an inflationary environment as a wholesaler, rising vendor costs result in higher Net sales driven by higher vendor prices when other variables such as quantities sold, mix of units sold and vendor promotions are constant. Under the last-in, first out (“LIFO”) method of inventory accounting, product cost increases are recognized within Cost of sales based on expected year-end inventory quantities and costs, which generally has the effect of decreasing Gross profit and the carrying value of inventory during periods of inflation.

Current wording

In an inflationary environment, rising vendor costs typically increase Net sales for wholesalers, driven by higher vendor prices when other variables such as quantities sold, mix of units sold and vendor promotions are constant. Under the last-in, first out (“LIFO”) method of inventory accounting, product cost increases are recognized within Cost of sales based on expected year-end inventory quantities and costs, which generally has the effect of decreasing Gross profit and the carrying value of inventory during periods of inflation.

Previous wording

We continue to evaluate our distribution center network to better and more efficiently service customers and suppliers and further optimize performance. In connection with the termination of our supply agreement with a customer in the East region in fiscal 2025, we ceased operations at our Allentown, Pennsylvania distribution center in the first quarter of fiscal 2026 with the remaining volume consolidated into other facilities in the Northeast. Business with this customer in the Northeast accounted for approximately $1 billion in annual sales. The termination enables us to accelerate progress toward our longer-term strategic and three-year financial objectives.

Current wording

We continue to evaluate our distribution center network to better and more efficiently service customers and suppliers and further optimize performance. In connection with the termination of our supply agreement with a customer in the East region in fiscal 2025, we ceased operations at our Allentown, Pennsylvania distribution center in the first quarter of fiscal 2026 with the remaining volume consolidated into other facilities in the Northeast. Business with this customer in the Northeast accounted for approximately $1 billion in annual sales. The termination enables us to accelerate progress toward our longer-term strategic and three-year financial objectives. Additionally, in the third quarter of fiscal 2026, we consolidated the volume of a distribution center into a nearby facility in the West region and announced the planned consolidation of a facility in the Central region, which is expected to occur in the fourth quarter of fiscal 2026.

Previous wording

(1)Fiscal 2026 primarily reflects distribution center and store closure charges, adjustments to previously recorded multiemployer pension plan withdrawal liabilities and costs associated with certain employee severance and other employee separation costs. Fiscal 2025 primarily reflects costs associated with certain employee severance and other employee separation costs and distribution center and store closure charges. See Notes to Condensed Consolidated Financial Statements for additional information.

Current wording

(1)Fiscal 2026 primarily reflects distribution center and store closure charges, adjustments to previously recorded multiemployer pension plan withdrawal liabilities and costs associated with certain employee severance and other employee separation costs. Fiscal 2025 primarily reflects costs associated with certain employee severance and other employee separation costs, outsourcing certain corporate functions under restructuring initiatives and distribution center and store closure charges. See Notes to Condensed Consolidated Financial Statements for additional information.

Previous wording

(2)Fiscal 2026 primarily includes $5 million in non-cash impairment charges in the second quarter of fiscal 2026 related to the decision to discontinue operations at certain distribution centers, warehouses or offsite storage facilities, a $10 million non-cash asset impairment charge in the first quarter of fiscal 2026 related to the decision to close certain retail store locations and losses on the sales of receivables under the accounts receivable monetization program. Fiscal 2025 primarily includes losses on the sales of receivables under the accounts receivable monetization program. See Notes to Condensed Consolidated Financial Statements for additional information.

Current wording

(2)Fiscal 2026 primarily includes a $14 million non-cash asset impairment charge in the third quarter of fiscal 2026 related to the decision to close a leased retail store location, $5 million in non-cash impairment charges in the second quarter of fiscal 2026 related to the decision to discontinue operations at certain distribution centers, warehouses or offsite storage facilities, a $10 million non-cash asset impairment charge in the first quarter of fiscal 2026 related to the decision to close certain retail store locations and losses on the sales of receivables under the accounts receivable monetization program. Fiscal 2025 primarily includes a $24 million non-cash asset impairment charge related to a distribution center in our East region and losses on the sales of receivables under the accounts receivable monetization program. See Notes to Condensed Consolidated Financial Statements for additional information.

Previous wording

(4)Fiscal 2026 includes costs and charges and insurance recoveries related to the Cybersecurity Incident. See Notes to Condensed Consolidated Financial Statements for additional information.

Current wording

(4)Fiscal 2026 includes insurance recoveries and costs and charges related to the Cybersecurity Incident. See Notes to Condensed Consolidated Financial Statements for additional information.

Previous wording

Our Net sales for the second quarter of fiscal 2026 decreased approximately 2.6% from the second quarter of fiscal 2025. The decrease in Net sales was primarily driven by a decrease in Conventional and Retail Net Sales, partially offset by an increase in Natural Net Sales.

Current wording

Our Net sales for the third quarter of fiscal 2026 decreased approximately 4.2% from the third quarter of fiscal 2025. The decrease in Net sales was primarily driven by a decrease in Conventional and Retail Net Sales, partially offset by an increase in Natural Net Sales.

Previous wording

Natural Net sales for the second quarter of fiscal 2026 increased approximately 6.7% from the second quarter of fiscal 2025. The increase was primarily driven by an increase in unit volumes, including new business with existing and new customers, as well as inflation.

Current wording

Natural Net sales for the third quarter of fiscal 2026 increased approximately 4.4% from the third quarter of fiscal 2025. The increase was primarily driven by a low single digit increase from inflation and a less than 1% increase in unit volumes, including new business with existing and new customers, offset by a decrease in volume from anticipated lost sales related to the unwind of short-term project-based work.

Previous wording

Conventional Net sales for the second quarter of fiscal 2026 decreased approximately 12.1% from the second quarter of fiscal 2025. The decrease was driven by a decline in unit volumes including the impact from network optimization largely driven by the transition out of our Allentown, Pennsylvania distribution center, partially offset by increases from inflation.

Current wording

Conventional Net sales for the third quarter of fiscal 2026 decreased approximately 13.6% from the third quarter of fiscal 2025. The decrease was driven by a mid-teens decline in unit volumes including the high single digit impact from network optimization actions, largely driven by the transition out of our Allentown, Pennsylvania distribution center completed in the first quarter of fiscal 2026, partially offset by a low single digit increase from inflation.

Previous wording

Retail Net sales for the second quarter of fiscal 2026 decreased approximately 8.2% from the second quarter of fiscal 2025. The decrease was primarily driven by store closures and a 2.1% decrease in identical store sales from lower volume.

Current wording

Retail Net sales for the third quarter of fiscal 2026 decreased approximately 10.1% from the third quarter of fiscal 2025. The decrease was primarily driven by store closures and a 4.4% decrease in identical store sales from lower volume.

Previous wording

Lower eliminations of Net sales for the second quarter of fiscal 2026 as compared to the second quarter of fiscal 2025 were primarily due to a decrease in Conventional to Retail sales, which are eliminated upon consolidation.

Current wording

Lower eliminations of Net sales for the third quarter of fiscal 2026 as compared to the third quarter of fiscal 2025 were primarily due to a decrease in Conventional to Retail sales, which are eliminated upon consolidation.

Previous wording

Our Net sales for fiscal 2026 year-to-date decreased approximately 1.5% from fiscal 2025 year-to-date. The decrease in Net sales was primarily driven by a decrease in Conventional and Retail Net Sales, partially offset by an increase in Natural Net Sales.

Current wording

Our Net sales for fiscal 2026 year-to-date decreased approximately 2.4% from fiscal 2025 year-to-date. The decrease in Net sales was primarily driven by a decrease in Conventional and Retail Net Sales, partially offset by an increase in Natural Net Sales.

Previous wording

Natural Net sales for fiscal 2026 year-to-date increased approximately 8.5% from fiscal 2025 year-to-date. The increase was primarily driven by an increase in unit volumes, including new business with existing and new customers, as well as inflation.

Current wording

Natural Net sales for fiscal 2026 year-to-date increased approximately 7.1% from fiscal 2025 year-to-date. The increase was primarily driven by a low single digit increase in unit volumes, including new business with existing and new customers, as well as a low single digit increase from inflation.

Previous wording

Conventional Net sales for fiscal 2026 year-to-date decreased approximately 11.9% from fiscal 2025 year-to-date. The decrease was driven by a decline in unit volumes including the impact from network optimization largely driven by the transition out of our Allentown, Pennsylvania distribution center, partially offset by increases from inflation.

Current wording

Conventional Net sales for fiscal 2026 year-to-date decreased approximately 12.4% from fiscal 2025 year-to-date. The decrease was driven by a mid-teens decline in unit volumes including the high single digit impact from network optimization actions, largely driven by the transition out of our Allentown, Pennsylvania distribution center completed in the first quarter of fiscal 2026, partially offset by a low single digit increase from inflation.

Previous wording

Retail Net sales for fiscal 2026 year-to-date decreased approximately 6.9% from fiscal 2025 year-to-date. The decrease was primarily driven by store closures and a 2.5% decrease in identical store sales from lower volume.

Current wording

Retail Net sales for fiscal 2026 year-to-date decreased approximately 7.9% from fiscal 2025 year-to-date. The decrease was primarily driven by store closures and a 3.1% decrease in identical store sales from lower volume.

Previous wording

Our Gross profit decreased $26 million, or 2.4%, to $1,046 million for the second quarter of fiscal 2026, from $1,072 million for the second quarter of fiscal 2025. Our Gross profit as a percentage of Net sales increased to 13.2% for the second quarter of fiscal 2026 compared to 13.1% for the second quarter of fiscal 2025. The gross profit ratewas primarily impacted by the benefits of network optimization and customer mix as well as higher levels of procurement gains, which were partially offset by a lower margin rate in the Retail segment.

Current wording

Our Gross profit decreased $33 million, or 3.0%, to $1,049 million for the third quarter of fiscal 2026, from $1,082 million for the third quarter of fiscal 2025. Our Gross profit as a percentage of Net sales increased to 13.6% for the third quarter of fiscal 2026 compared to 13.4% for the third quarter of fiscal 2025. Theincrease in gross profit ratewas primarily driven by the positive impact of network optimization actions and customer mix, which were partially offset by a lower margin rate in the Retail segment.

Previous wording

Our Gross profit decreased $13 million, or 0.6%, to $2,097 million for fiscal 2026 year-to-date, from $2,110 million for fiscal 2025 year-to-date. Our Gross profit as a percentage of Net sales increased to 13.3% for fiscal 2026 year-to-date compared to 13.2% for fiscal 2025 year-to-date. Theincrease in gross profit ratewas primarily driven by the positive impact of network optimization and customer mix as well as higher levels of procurement gains, which were partially offset by a lower margin rate in the Retail segment and $19 million of charges associated with the previously disclosed Cybersecurity Incident.

Current wording

Our Gross profit decreased $46 million, or 1.4%, to $3,146 million for fiscal 2026 year-to-date, from $3,192 million for fiscal 2025 year-to-date. Our Gross profit as a percentage of Net sales increased to 13.4% for fiscal 2026 year-to-date compared to 13.3% for fiscal 2025 year-to-date. Theincrease in gross profit ratewas primarily driven by the positive impact of network optimization actions and customer mix as well as higher levels of procurement gains, which were partially offset by a lower margin rate in the Retail segment and $20 million of charges associated with the previously disclosed Cybersecurity Incident.

Previous wording

Operating expenses decreased $59 million, or 5.7%, to $972 million, or 12.2% of Net sales, for the second quarter of fiscal 2026 compared to $1,031 million, or 12.6% of Net sales, for the second quarter of fiscal 2025. The decrease in Operating expenses as a percentage of Net sales was primarily driven by the benefits from cost saving initiatives, including network optimization and higher levels of distribution center productivity, and insurance proceeds.

Current wording

Operating expenses decreased $71 million, or 6.9%, to $954 million, or 12.4% of Net sales, for the third quarter of fiscal 2026 compared to $1,025 million, or 12.7% of Net sales, for the third quarter of fiscal 2025. The decrease in Operating expenses as a percentage of Net sales was primarily driven by $20 million in cybersecurity insurance proceeds and the benefits from cost saving initiatives, including network optimization actions and higher levels of distribution center productivity that improved labor cost rates.

Previous wording

Operating expenses decreased $78 million, or 3.8%, to $1,968 million, or 12.5% of Net sales, for fiscal 2026 year-to-date compared to $2,046 million, or 12.8% of Net sales, for fiscal 2025 year-to-date. The decrease in Operating expenses as a percentage of Net sales was primarily driven by the benefits from cost saving initiatives and $20 million in cybersecurity insurance recoveries.

Current wording

Operating expenses decreased $149 million, or 4.9%, to $2,922 million, or 12.4% of Net sales, for fiscal 2026 year-to-date compared to $3,071 million, or 12.7% of Net sales, for fiscal 2025 year-to-date. The decrease in Operating expenses as a percentage of Net sales was primarily driven by the benefits from cost saving initiatives, including network optimization actions and higher levels of distribution center productivity that improved labor cost rates, as well as $40 million in cybersecurity insurance recoveries, partially offset by higher costs associated with union and other employee benefits.

Previous wording

Restructuring, acquisition and integration related expenses decreased $1 million to $8 million for the second quarter of fiscal 2026, compared to $9 million for the second quarter of fiscal 2025. The decrease was primarily driven by a decrease in certain employee severance and other employee separation costs and costs associated with outsourcing certain corporate functions under restructuring initiatives, partially offset by an increase in closed property charges and costs.

Current wording

Restructuring, acquisition and integration related expenses decreased $4 million to $10 million for the third quarter of fiscal 2026, compared to $14 million for the third quarter of fiscal 2025. The decrease was primarily driven by a decrease in costs associated with outsourcing certain corporate functions under restructuring initiatives and certain employee severance and other employee separation costs, partially offset by an increase in closed property charges and costs.

Previous wording

Restructuring, acquisition and integration related expenses increased $9 million to $30 million for fiscal 2026 year-to-date, compared to $21 million for fiscal 2025 year-to-date. The increase was primarily driven by an adjustment to previously recorded multiemployer pension plan withdrawal liabilities in the first quarter of fiscal 2026 and higher closed property charges and costs, partially offset by a decrease in certain employee severance and other employee separation costs.

Current wording

Restructuring, acquisition and integration related expenses increased $5 million to $40 million for fiscal 2026 year-to-date, compared to $35 million for fiscal 2025 year-to-date. The increase was primarily driven by higher closed property charges and costs for fiscal 2026 year-to-date and an adjustment to previously recorded multiemployer pension plan withdrawal liabilities in the first quarter of fiscal 2026, partially offset by a decrease in certain employee severance and other employee separation costs and costs associated with outsourcing certain corporate functions under restructuring initiatives.

Previous wording

Loss on sale of assets and other asset charges increased $12 million to $23 million for fiscal 2026 year-to-date, from $11 million for fiscal 2025 year-to-date. The increase was primarily driven by higher asset impairment charges. Fiscal 2026 year-to-date primarily included $15 million in non-cash asset impairment charges related to decisions to close certain retail store locations and discontinue operations at certain distribution centers, warehouses or offsite storage facilities, while there were no asset impairment charges in fiscal 2025 year-to-date. Fiscal 2026 and 2025 year-to-date included losses on the sales of receivables under the accounts receivable monetization program.

Current wording

Loss on sale of assets and other asset charges increased $3 million to $42 million for fiscal 2026 year-to-date, from $39 million for fiscal 2025 year-to-date. Fiscal 2026 year-to-date primarily included $29 million in non-cash asset impairment charges related to decisions to close certain retail store locations and discontinue operations at certain distribution centers, warehouses or offsite storage facilities. Fiscal 2025 year-to-date primarily included a $24 million non-cash asset impairment charge related to the Allentown, Pennsylvania distribution center. Fiscal 2026 and 2025 year-to-date included losses on the sales of receivables under the accounts receivable monetization program.

Previous wording

Reflecting the factors described above, Operating income increased $30 million to $57 million for the second quarter of fiscal 2026, compared to Operating income of $27 million for the second quarter of fiscal 2025. The increase in Operating income was primarily driven by a decrease in Operating expenses, partially offset by a decrease in Gross profit and an increase in Loss on sale of assets and other asset charges in the second quarter of fiscal 2026, each as described above.

Current wording

Reflecting the factors described above, Operating income increased $51 million to $66 million for the third quarter of fiscal 2026, compared to Operating income of $15 million for the third quarter of fiscal 2025. The increase in Operating income was primarily driven by a decrease in Operating expenses, Loss on sale of assets and other asset charges and Restructuring, acquisition and integration related expenses, partially offset by a decrease in Gross profit in the third quarter of fiscal 2026, each as described above.

Previous wording

Reflecting the factors described above, Operating income increased $44 million to $76 million for fiscal 2026 year-to-date, compared to Operating income of $32 million for fiscal 2025 year-to-date. The increase in Operating income was primarily driven by a decrease in Operating expenses, partially offset by a decrease in Gross profit and an increase in Loss on sale of assets and other asset charges and Restructuring, acquisition and integration related expenses in fiscal 2026 year-to-date, each as described above.

Current wording

Reflecting the factors described above, Operating income increased $95 million to $142 million for fiscal 2026 year-to-date, compared to Operating income of $47 million for fiscal 2025 year-to-date. The increase in Operating income was primarily driven by a decrease in Operating expenses, partially offset by a decrease in Gross profit and an increase in Restructuring, acquisition and integration related expenses and Loss on sale of assets and other asset charges in fiscal 2026 year-to-date, each as described above.

Previous wording

The decrease in interest expense, net, in the second quarter of fiscal 2026 compared to the second quarter of fiscal 2025 was primarily driven by lower outstanding long-term debt balances.

Current wording

The decrease in interest expense, net, in the third quarter of fiscal 2026 compared to the third quarter of fiscal 2025 was primarily driven by lower outstanding long-term debt balances.

Previous wording

The effective tax rate for the second quarter of fiscal 2026 was an expense rate of 13.0% on pre-tax income compared to a benefit rate of 60.0% on pre-tax loss for the second quarter of fiscal 2025. The change from the second quarter of fiscal 2025 is primarily driven by the increase in pre-tax income during the second quarter of fiscal 2026.

Current wording

The effective tax rate for the third quarter of fiscal 2026 was an expense rate of 21.4% on pre-tax income compared to a benefit rate of 56.3% on pre-tax loss for the third quarter of fiscal 2025. The change from the third quarter of fiscal 2025 is primarily driven by the impact of a partnership investment entered into in the third quarter of fiscal 2025, as well as a decrease in the discrete tax benefit for return to provision tax credits in the third quarter of fiscal 2026 compared to fiscal 2025, combined with an increase in pre-tax income for the third quarter of fiscal 2026.

Previous wording

The effective tax rate for fiscal 2026 year-to-date was a benefit rate of 14.3% on pre-tax income compared to a benefit rate of 24.1% on pre-tax loss for fiscal 2025 year-to-date. The change from fiscal 2025 year-to-date is primarily driven by the increase in pre-tax income, discrete tax benefits from favorable tax audit settlements and employee stock award vestings during fiscal 2026, as well as the tax credit benefit of a solar array placed in service during the first quarter of fiscal 2026.

Current wording

The effective tax rate for fiscal 2026 year-to-date was an expense rate of 12.5% on pre-tax income compared to a benefit rate of 35.6% on pre-tax loss for fiscal 2025 year-to-date. The change from fiscal 2025 year-to-date is primarily driven by the increase in pre-tax income, discrete tax benefits from favorable tax audit settlements and employee stock award vestings during fiscal 2026, as well as the tax credit benefit of a solar array placed in service during the first quarter of fiscal 2026.

Previous wording

Reflecting the factors described in more detail above, Net income attributable to United Natural Foods, Inc. was $20 million, or $0.31 per diluted common share, for the second quarter of fiscal 2026, compared to Net loss attributable to United Natural Foods, Inc. of $3 million, or $0.05 per diluted common share, for the second quarter of fiscal 2025.

Current wording

Reflecting the factors described in more detail above, Net income attributable to United Natural Foods, Inc. was $33 million, or $0.52 per diluted common share, for the third quarter of fiscal 2026, compared to Net loss attributable to United Natural Foods, Inc. of $7 million, or $0.12 per diluted common share, for the third quarter of fiscal 2025.

Previous wording

Reflecting the factors described in more detail above, Net income attributable to United Natural Foods, Inc. was $16 million, or $0.25 per diluted common share, for fiscal 2026 year-to-date, compared to Net loss attributable to United Natural Foods, Inc. of $24 million, or $0.39 per diluted common share, for fiscal 2025 year-to-date.

Current wording

Reflecting the factors described in more detail above, Net income attributable to United Natural Foods, Inc. was $49 million, or $0.78 per diluted common share, for fiscal 2026 year-to-date, compared to Net loss attributable to United Natural Foods, Inc. of $31 million, or $0.51 per diluted common share, for fiscal 2025 year-to-date.

Previous wording

Natural Adjusted EBITDA increased $33 million, or 34.0%, for the second quarter of fiscal 2026 as compared to the second quarter of fiscal 2025. The increase was driven by an increase in gross profit excluding the LIFO charge and other adjustments as outlined in Note 14—Business Segments combined with a decrease in operating expenses.

Current wording

Natural Adjusted EBITDA increased $22 million, or 17.7%, for the third quarter of fiscal 2026 as compared to the third quarter of fiscal 2025. The increase was driven by an increase in gross profit excluding the LIFO charge and other adjustments as outlined in Note 14—Business Segments, partially offset by an increase in operating expenses.

Previous wording

•Natural Gross profit, which excludes the LIFO charge and other adjustments as outlined in Note 14—Business Segments, increased $29 million. Natural gross profit rate decreased approximately 15 basis points driven primarily by lower product margin rates and customer and product mix, which were partially offset by higher levels of procurement gains.

Current wording

•Natural Gross profit, which excludes the LIFO charge and other adjustments as outlined in Note 14—Business Segments, increased $24 million. Natural gross profit rate was approximately flat primarily due to lower product margin rates and customer mix, offset by the favorable impact of supplier programs.

Previous wording

•Natural Operating expense, which excludes depreciation and amortization, share-based compensation and other adjustments as outlined in Note 14—Business Segments, decreased $4 million. Natural operating expense rate decreased approximately 77 basis points primarily due to the leveraging impact of higher sales and the benefits from cost saving initiatives, partially offset by increases in costs associated with union and other employee benefits.

Current wording

•Natural Operating expense, which excludes depreciation and amortization, share-based compensation and other adjustments as outlined in Note 14—Business Segments, increased $2 million. Natural operating expense rate decreased approximately 39 basis points primarily due to the benefits from cost saving initiatives in distribution expenses and selling, general and administrative expenses and lower allocated corporate overhead driven largely by incentive compensation, partially offset by increases in distribution expenses associated with union and other employee benefits and higher fuel costs.

Previous wording

•Conventional Gross profit, which excludes the LIFO charge and other adjustments as outlined in Note 14—Business Segments, decreased $24 million. Conventional gross profit rate increased approximately 73 basis points driven primarily by the positive impact of network optimization and customer and product mix as well as higher levels of procurement gains.

Current wording

•Conventional Gross profit, which excludes the LIFO charge and other adjustments as outlined in Note 14—Business Segments, decreased $24 million. Conventional gross profit rate increased approximately 89 basis points driven primarily by the positive impact of network optimization actions and customer mix.

Previous wording

•Conventional Operating expense, which excludes depreciation and amortization, share-based compensation and other adjustments as outlined in Note 14—Business Segments, decreased $39 million. Conventional operating expense rate increased approximately 8 basis points primarily due to the deleveraging impact of lower sales on fixed costs, partially offset by benefits from cost saving initiatives, including network optimization.

Current wording

•Conventional Operating expense, which excludes depreciation and amortization, share-based compensation and other adjustments as outlined in Note 14—Business Segments, decreased $41 million. Conventional operating expense rate increased approximately 14 basis points primarily due to the deleveraging impact of lower sales on fixed costs and increases in distribution expenses associated with union and other employee benefits, partially offset by benefits from cost saving initiatives in distribution expenses and selling, general and administrative expenses, which included the benefits of network optimization actions in distribution expenses.

Previous wording

Retail Adjusted EBITDA decreased $12 million for the second quarter of fiscal 2026 as compared to the second quarter of fiscal 2025. The decrease was driven by a decrease in gross profit excluding the LIFO charge, partially offset by a decrease in operating expenses.

Current wording

Retail Adjusted EBITDA decreased $10 million for the third quarter of fiscal 2026 as compared to the third quarter of fiscal 2025. The decrease was driven by a decrease in gross profit excluding the LIFO charge, partially offset by a decrease in operating expenses.

Previous wording

•Retail Gross profit, which excludes the LIFO charge and other adjustments as outlined in Note 14—Business Segments, decreased $24 million. Retail gross profit rate decreased approximately 200 basis points driven primarily by lower product margin rates and changes in category mix.

Current wording

•Retail Gross profit, which excludes the LIFO charge and other adjustments as outlined in Note 14—Business Segments, decreased $19 million. Retail gross profit rate decreased approximately 84 basis points driven primarily by lower product margin rates and changes in category mix.

Previous wording

•Retail Operating expense, which excludes depreciation and amortization, share-based compensation and other adjustments as outlined in Note 14—Business Segments, decreased $12 million. Retail operating expense rate was approximately flat to fiscal 2025 primarily due to the deleveraging impact of lower sales on fixed costs, offset by lower labor costs from operating efficiencies and store closures.

Current wording

•Retail Operating expense, which excludes depreciation and amortization, share-based compensation and other adjustments as outlined in Note 14—Business Segments, decreased $9 million. Retail operating expense rate increased approximately 108 basis points primarily due to increases in occupancy-related costs and the deleveraging impact of lower sales on fixed costs, partially offset by lower labor costs from store closures.

Previous wording

Natural Adjusted EBITDA increased $58 million, or 29.1%, for fiscal 2026 year-to-date as compared to fiscal 2025 year-to-date. The increase was driven by an increase in gross profit excluding the LIFO charge and other adjustments as outlined in Note 14—Business Segments, partially offset by an increase in operating expenses.

Current wording

Natural Adjusted EBITDA increased $80 million, or 24.8%, for fiscal 2026 year-to-date as compared to fiscal 2025 year-to-date. The increase was driven by an increase in gross profit excluding the LIFO charge and other adjustments as outlined in Note 14—Business Segments, partially offset by an increase in operating expenses.