United Natural Foods (United Natural Foods) Gross Margin % : 13.31% (As of Jan. 2024)

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What is United Natural Foods Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. United Natural Foods's Gross Profit for the three months ended in Jan. 2024 was $1,035 Mil. United Natural Foods's Revenue for the three months ended in Jan. 2024 was $7,775 Mil. Therefore, United Natural Foods's Gross Margin % for the quarter that ended in Jan. 2024 was 13.31%.

Warning Sign:

United Natural Foods Inc gross margin has been in long-term decline. The average rate of decline per year is -1.2%.

The historical rank and industry rank for United Natural Foods's Gross Margin % or its related term are showing as below:

UNFI' s Gross Margin % Range Over the Past 10 Years
Min: 13.33 Med: 14.75 Max: 16.6
Current: 13.33

During the past 13 years, the highest Gross Margin % of United Natural Foods was 16.60%. The lowest was 13.33%. And the median was 14.75%.

UNFI's Gross Margin % is ranked worse than
79.1% of 311 companies
in the Retail - Defensive industry
Industry Median: 22.74 vs UNFI: 13.33

United Natural Foods had a gross margin of 13.31% for the quarter that ended in Jan. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for United Natural Foods was -1.20% per year.

United Natural Foods Gross Margin % Historical Data

The historical data trend for United Natural Foods's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

United Natural Foods Gross Margin % Chart

United Natural Foods Annual Data

Trend

Jul14

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Gross Margin %

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14.41

14.64

14.62

14.46

13.65

United Natural Foods Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Gross Margin %	Get a 7-Day Free Trial															13.68	13.32	13.02	13.64	13.31

Competitive Comparison of United Natural Foods's Gross Margin %

For the Food Distribution subindustry, United Natural Foods's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

United Natural Foods's Gross Margin % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, United Natural Foods's Gross Margin % distribution charts can be found below:

* The bar in red indicates where United Natural Foods's Gross Margin % falls into.

United Natural Foods Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

United Natural Foods's Gross Margin for the fiscal year that ended in Jul. 2023 is calculated as

Gross Margin % (A: Jul. 2023 )	=	Gross Profit (A: Jul. 2023 )	/	Revenue (A: Jul. 2023 )
	=	4131	/	30272
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(30272 - 26141)	/	30272
	=	13.65 %

United Natural Foods's Gross Margin for the quarter that ended in Jan. 2024 is calculated as

Gross Margin % (Q: Jan. 2024 )	=	Gross Profit (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	1035	/	7775
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(7775 - 6740)	/	7775
	=	13.31 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

United Natural Foods (NYSE:UNFI) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

United Natural Foods had a gross margin of 13.31% for the quarter that ended in Jan. 2024 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

United Natural Foods Gross Margin % Related Terms

Thank you for viewing the detailed overview of United Natural Foods's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

United Natural Foods (United Natural Foods) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » United Natural Foods Inc (NYSE:UNFI) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

UN3:Germany UN3:Germany

Address

313 Iron Horse Way, Providence, RI, USA, 02908

Website

https://www.unfi.com

United Natural Foods Inc is a wholesale distributor of natural, organic and specialty foods and nonfood products across North America. The company's products consist of national, regional and private label brands grouped into grocery and general merchandise, produce, perishables and frozen foods, nutritional supplements and sports nutrition, bulk and foodservice products, and personal care items. United Natural Foods serves various retail formats including conventional supermarket chains, natural product superstores, independent retail operators and foodservice channels such as e-commerce platforms. The company's operations are comprised of principal divisions: the wholesale division; the retail division; and other.

Executives

Andre Persaud	officer: President and CEO, Retail	30 HUNTER LANE, CAMP HILL PA 17011
Bates Ann Torre	director	300 CONTINENTAL DRIVE, NEWARK DE 19713
John W Howard	officer: Interim CFO	313 IRON HORSE WAY, PROVIDENCE RI 02908
Douglas J Alexander Jr	director, officer: Chief Executive Officer	3925 BROOKSIDE PARKWAY, ALPHARETTA GA 30022
Lynn S. Blake	director	250 WEST 34TH STREET, 3RD FLOOR, C/O WISDOMTREE INVESTMENTS, INC., NEW YORK NY 10119
James M Loree	director	1000 STANLEY DRIVE, NEW BRITAIN CT 06053
James C Pappas	director	1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Erin Horvath	officer: COO	313 IRON HORSE WAY, C/O IRON HORSE WAY, PROVIDENCE RI 02908
Danielle Benedict	officer: SVP, Human Resources	313 IRON HORSE WAY, PROVIDENCE RI 02908
Christopher P. Testa	officer: President, Blue Marble Brands	C/O UNITED NATURAL FOODS, INC., 313 IRON HORSE WAY, PROVIDENCE RI 02908
Richard Eric Esper	officer: Chief Accounting Officer	8501 WILLIAMS ROAD, ESTERO FL 33928
Mahrukh Hussain	officer: General Counsel and Corp. Sec.	313 IRON HORSE WAY, PROVIDENCE RI 02908
Louis Anthony Martin	officer: CSTO	313 IRON HORSE WAY, PROVIDENCE RI 02908
Matthew T Echols	officer: CCAO	313 IRON HORSE WAY, PROVIDENCE RI 02908
Mohammad Shamim	director	12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238