United Natural Foods (UNFI) stock plummeted 5.03% in intraday trading on Wednesday, following the release of its fiscal first-quarter 2025 results and updated outlook. While the company reported solid Q1 earnings that topped estimates, its sales guidance for the rest of the year fell short of expectations, prompting a selloff.

United Natural posted Q1 adjusted earnings of $0.16 per share, surpassing the consensus estimate of $0.01 per share. Revenue of $7.87 billion also exceeded expectations, driven by a 2% increase in wholesale volumes and positive contributions from both natural and conventional businesses. The company cited continued momentum with natural customers and more modest declines in its conventional business.

However, United Natural raised concerns with its updated sales guidance for fiscal 2025. The company now expects full-year net sales in the range of $30.6 billion to $31 billion, implying a deceleration in the second half of the year compared to the first quarter's growth rate. This guidance fell short of analysts' expectations, leading to the stock's selloff on Wednesday.