Flowers Foods Q2 Earnings Miss Estimates, Revenue Falls 1.5% YoY

Flowers Foods (FLO) reported Q2 CY2025 revenue of $1.24 billion, a 1.5% YoY increase, but missed analyst estimates by 2%. Non-GAAP profit was $0.30 per share, in line with estimates. The company lowered its full-year revenue guidance to $5.27 billion, a 1.4% decrease, and adjusted EPS guidance to $1.05, a 4.5% decrease. Management cited increased competition and shifting consumer preferences as reasons for the pressure on results.

Flowers Foods Inc. (FLO) reported its second-quarter (Q2) 2025 financial results, showing revenue of $1.243 billion, a 1.5% year-over-year (YoY) increase, but missing analyst estimates by 2% [1]. Non-GAAP profit was $0.30 per share, in line with estimates. The company lowered its full-year 2025 revenue guidance to $5.27 billion, a 1.4% decrease, and adjusted EPS guidance to $1.05, a 4.5% decrease [1].

The company cited increased competition and shifting consumer preferences as reasons for the pressure on results. Flowers Foods is proactively investing in innovation and mergers and acquisitions (M&A) to transform its portfolio and align it with consumer demand [1].

Chairman and CEO Ryals McMullian stated, "Macroeconomic uncertainty and shifting consumer demand have continued to pressure the bread category, but our portfolio strategy has shown promise in offsetting those headwinds" [1].

Flowers Foods expects net sales of approximately $5.239 billion to $5.308 billion for the full year 2025, representing 2.7% to 4.0% growth compared to the prior year [1]. Adjusted EBITDA is expected to be in the range of approximately $512 million to $538 million, while adjusted diluted EPS is expected to be approximately $1.00 to $1.10 [1].

The stock has lost about 19.8% since the beginning of the year, compared to the S&P 500's gain of 10% [1]. The Zacks Rank for Flowers Foods is currently #4 (Sell), indicating that the shares are expected to underperform the market in the near future [1].

References:
[1] https://www.ainvest.com/news/flowers-foods-q2-revenue-1-243-billion-eps-0-28-misses-estimates-bread-category-challenges-2508/