United Natural Foods has lowered its full-year earnings per share guidance following the disposal of its non-food and general merchandise business, reflecting restructuring charges that the company expects to dent earnings.
In an announcement today (10 June), United Natural Foods said that it now expects full-year earnings per share to total US$1.55 to $1.59, down from its previous guidance range of $1.67 to $1.69.
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The company said that it has entered into an agreement with L&R Distributors to sell its non-foods and general merchandise lines of businesses, including cosmetics, seasonal products, conventional health & beauty products and hard goods.
The group said that it expects to register restructuring and impairment charges of approximately $8.4-9.6m in the fourth quarter of fiscal 2011 as a result of the disposal. The remaining restructuring charges are expected to be incurred in the first quarter of fiscal 2012, United Natural added.
“This strategic transaction will allow UNFI to concentrate on its core business of the distribution of natural, organic, and speciality foods and products,” the company said in a statement.
