Zacks Investment Research
FLO Faces Gross Margin Pressure: Can Productivity Drive Recovery?Flowers Foods (FLO) reported a 40 basis point decline in Q2 gross margin to 48.4% due to lower production volumes reducing operating leverage across its bakery network. Total company volume fell 5.8% with Branded Retail volume dropping 7.6%. The company expects $9 million in savings for the remainder of 2026 and $20 million in annualized run-rate savings from cost-structure initiatives, but faces challenges offsetting margin pressure from weak volumes.
