When the pandemic spiked sales, Cub Foods owner United Natural Foods Inc. went on a hiring spree
Cub Foods owner UNFI reported a surge in sales during the third quarter of its fiscal year. That quarter covered the early stages of the coronavirus pandemic’s spread in the U.S., when restaurants closed and grocery shoppers began stocking up.
By Dylan Thomas Staff reporter, Minneapolis / St. Paul Business Journal
The coronavirus pandemic is driving a surge in sales for Cub Foods owner United Natural Foods, Inc., which responded by going on a hiring spree in March and April.
Providence, R.I.-based UNFI (NYSE: UNFI) reported preliminary net sales of $6.7 billion for the 13-week period ending May 2, a 12% increase over the third quarter of 2019. Preliminary net income was $88 million, up 54% from the third quarter of 2019.
Adjusted earnings per share increased to $1.40 from 61 cents for the same quarter in 2019, a jump of 130%. In a statement, UNFI CEO Steve Spinner said customer demand “remains elevated.”
“We remain fully committed to keeping supermarket shelves across North America stocked and serving our customers and communities when they need us most, while prioritizing the safety of our teams who are working with exceptional dedication,” Spinner said in the statement.
UNFI expects to report its official third quarter results in early June. The company is now rewriting its outlook for the entire 2020 fiscal year based on the exceptionally strong spring.
The company added more than 2,000 employees in March and April and continues to hire more, according to a report filed with the Securities and Exchange Commission. In March, it began offering a $2 per hour bonus to front-line retail workers and drivers.
UNFI acquired the 79-store Cub Foods chain in 2018 and has been planning to sell it off. Spinner addressed the topic in an earnings call earlier this year, putting the likely timing of that sale “toward the end of calendar (year) 2020.”