Flowers Foods Reports Declining Sales Amid Strategic Shift Toward Sourdough
Flowers Foods (FLO) reported second-quarter net sales of $1.193 billion, down 4% year-over-year due to a 5.8% volume decline that offset modest price gains. Branded retail volume dropped sharply by 7.6%, and net income fell 30.3% to $40.7 million as the company faces challenges in a competitive bread market. Management is focusing on sourdough and protein-enriched products, which are gaining traction with consumers. The relaunched Nature's Own line has shown early positive feedback from retailers and shoppers. CFO Anthony Scaglione expects $20 million in cost savings by fiscal 2027 through restructuring efforts. Despite these initiatives, the bread aisle remains tough due to tighter household budgets and aggressive competition on price. Adjusted EBITDA dropped 19.2% to $111.3 million, while adjusted diluted EPS fell nine cents to $0.21. Flowers Foods has cut its full-year sales guidance to between $5.07 billion and $5.14 billion.
Tickers: $FLO
Topics: consumer_trends cost_reduction product_innovation retail