Question · Q1 2026
John Parke inquired about the sustainability of gross margin strength, asking for a breakdown of the benefit from network optimization efforts in Q1. He also asked about recent changes in the competitive environment for both conventional and natural retail segments.
Answer
Matteo Tarditi (President and CFO, UNFI) explained that the Q1 gross margin rate was up 30 basis points year-over-year, driven by strong natural growth, supplier funds, shrink reduction, and some temporary procurement gains. He considered the $167 million adjusted EBITDA a good recurring run rate and highlighted future opportunities from merchandising and digital services. Sandy Douglas (CEO, UNFI) described a highly competitive retail environment, noting strong growth among innovative and differentiating retailers, particularly in discount, and emphasized UNFI's role in helping customers win.
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UNFI's earnings beat/miss a week before the call