Flowers Foods Q2 Earnings Miss: Net Income Down 30%, Guidance Cut
FLO is trading near its 52-week low of $6.8 (0.2% below the low).
Summary
Flowers Foods reported Q2 2026 results with net income down 30.3% and lowered full-year guidance, citing a challenging consumer environment and higher costs.
Key Events · Earnings and Guidance · FLO
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Q2 Net Income Plunges 30%
Net income fell to $40.7 million from $58.4 million a year ago, driven by lower volume, higher marketing spend, and increased labor and freight costs.
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Full-Year Guidance Lowered
Company now expects net sales of $5.070-$5.142 billion (down from $5.163-$5.267 billion), adjusted EBITDA of $453-$481 million (down from $465-$495 million), and adjusted EPS of $0.75-$0.85 (down from $0.80-$0.90).
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Volume Declines Across Segments
Branded Retail volume fell 7.6% and Other volume fell 3.4%, partially offset by pricing/mix gains of 3.8% and -1.0% respectively.
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Cost Pressures Persist
Materials, supplies, labor, and other production costs rose to 51.6% of net sales, up 40 basis points, while SD&A expenses rose to 39.7% of net sales, up 160 basis points.
Analysis · FLO · Manufacturing
A sharp decline in profitability marked Flowers Foods' Q2 2026, with net income falling 30.3% to $40.7 million and adjusted EBITDA down 19.2% to $111.3 million. The company also lowered its full-year guidance across all key metrics, citing a challenging consumer environment, increased marketing expense, and higher labor and freight costs. The stock is trading near its 52-week low, reflecting investor concerns about the company's ability to navigate these headwinds.
At the time of this filing, FLO was trading at $6.79 on NYSE in the Manufacturing sector, with a market capitalization of approximately $1.5B. The 52-week trading range was $6.80 to $16.07. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.