Flowers Foods Under Pressure As Analysts Point To Execution Issues, Private Label Pressure

Flowers Foods, Inc. (NYSE: FLO), a packed bakery company, reported sales in the second quarter of expected and issued its second consecutive reduction, prompting analysts to expand the scope of rear expectations and warn of the ongoing opposite winds.

Securities Trist analyst Bill Chapheel Reduce his expectation for 12 months to $ 15 from 20 dollars with a repeated reservation classification. He reduced sales and profits during the 2027 fiscal year, pointing to the implementation of inconsistent Flowers and intensifying special competition.

Chapelle has argued that although the demand for brand bread remains as a structural back wind, the arrow is likely to remain linked to the range until the private stickers sector appears a clearer direction. Its revised target reflects about 14x 2026 Eps, a discount on their peers trading near 18X, which sees him justifies slow growth and modest margins.

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Da Davidson analyst Brian Holland It also struck a cautious tone, saying that successive guidance discounts highlight the pressure of consumer and competitiveness that have not been compensated after innovation and acquisition.

He pointed out that the Simple Mills acquisition added a financial lever without providing interest in the short term, which leaves the flowers more vulnerable to the risk of implementation. The Netherlands is now offering the fiscal year 2025 Ebitda from 512 – 538 million dollars and sales ranging between 5.239 – 5.308 billion dollars, both of which were cut from previous expectations.

Holland has argued that although resets may help cancel the risks in the second half, Flores’ dependence on the bottled bakery leaves some rapid reforms, with risks ranging from illogical pricing to implementation and legal obligations.

In the separation update, Flowers reported the profitability of the amended arrow of 30 cents, in line with consensus, on sales of $ 1.242 billion, shy of Wall Street estimates. Net -income decreased approximately 13 %, while the modified Ebitda decreased by 4 %.

CEO Ryals McMullian He admitted that changing the demand for consumers and the total economic certainty of pressure on the category of bread, but said that the costs of saving costs are published to help compensate for weakness.

The company reduced EPS forecasts for EPS to $ 1.00-1.10 and reduced its sales instructions to 5.021-5.083 billion dollars, both of which are less than street expectations.

Price work: FLO shares are trading 0.54 % to $ 15.78 in the last check on Monday.

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