Flowers Foods Inc. (NYSE:FLO) saw its stock drop 8.61% in pre-market trading after the company posted disappointing first-quarter results and lowered its full-year forecast.
The producer of popular bread brands like Nature’s Own and Wonder Bread reported adjusted earnings per share (EPS) of $0.35, down from $0.38 in the same quarter last year and falling short of the $0.38 expected by analysts. Revenue also declined 1.4% year-over-year to $1.55 billion, missing consensus estimates of $1.6 billion.
The company attributed the underperformance to ongoing economic uncertainty and sharper-than-anticipated declines in the baked goods category. A reduction in sales volume and an unfavorable pricing mix—driven by heightened promotional activity—also weighed on results.
“Despite economic headwinds and a tougher category environment in Q1, our leading brands continued to hold or increase market share in both units and dollars,” said CEO Ryals McMullian in a statement.
However, Flowers Foods revised its full-year guidance downward. The company now expects fiscal 2025 revenue to range between $5.297 billion and $5.395 billion, lower than its previous forecast of $5.403 billion to $5.487 billion. Adjusted EPS is now projected at $1.05 to $1.15, compared to prior guidance of $1.11 to $1.24.
The results and lowered outlook reflect broader consumer spending challenges and increased promotional pressure in the food industry, which may continue to impact profitability in the near term.
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