What led to United Natural Foods Inc (NYSE: UNFI) stock crash

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United Natural Foods Inc (NYSE: UNFI) stock lost over 12.2% on 29th September, 2020 (as of 1:04 pm GMT-4; Source: Google finance). United Natural Foods said that Chief Executive Steven L. Spinner is to retire after July 31, when his employment contract expires, or earlier if a successor is found. Spinner will remain on the board as executive chairman after the retirement, the company said. United Natural Foods’ board has started a CEO search, and has hired an executive-search firm to assist.

For the fourth quarter of FY 20 Adjusted EBITDA for the fourth quarter of fiscal 2020 has increased to $197.9 million, compared to $165.9 million for the fourth quarter of fiscal 2019. The company has reported net income for the fourth quarter of fiscal 2020 of $52.4 million compared to $19.2 million for the fourth quarter of fiscal 2019. At the end of the fiscal year 2020, total Outstanding Debt, net of cash, was at $2.61 billion of total outstanding debt, net of cash, which represents a decrease of $55 million in the fourth quarter of fiscal 2020 (compared to the third quarter of fiscal 2020) and a total decrease of $388 million in fiscal 2020.

UNFI in the fourth quarter of FY 20 has reported the adjusted earnings per share of $1.06, while reported the adjusted revenue growth of 0.4 percent to $6.75 billion in the fourth quarter of FY 20. Retail identical store sales for the fourth quarter of fiscal 2020 rose 21% compared to the fourth quarter of fiscal 2019. Gross margin rate in the fourth quarter of fiscal 2020 has expanded to 14.81% of net sales compared to 14.40% of net sales for the fourth quarter of fiscal 2019. Retail contributed about 29 basis points of the increase due to a higher gross margin rate driven by lower promotional spending and the retail segment representing a greater percentage of total net sales. Wholesale contributed the remaining 12 basis points of the increase mainly due to lower inbound freight expense and a lower LIFO charge.

For fiscal 2021, the company expects sales to be between $27 billion and $27.8 billion, and adjusted EPS is expected to be in the range of $3.05 and $3.55.

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