Shares of Flowers Foods (FLO) plummeted 5.61% in pre-market trading on Friday following the release of its second-quarter 2025 financial results and lowered full-year guidance. The company, known for brands like Dave's Killer Bread, faced headwinds from macroeconomic uncertainty and shifting consumer demand in the bread category.

For the quarter ended July 12, Flowers Foods reported net sales of $1.243 billion, a 1.5% increase year-over-year, driven by the acquisition of Simple Mills. However, this figure fell short of analyst expectations of $1.266 billion. Net income declined by 12.8% to $58.4 million, while adjusted earnings per share came in at $0.30, meeting consensus estimates but down from $0.36 in the same period last year.

In light of the challenging market conditions, Flowers Foods revised its fiscal 2025 outlook downward. The company now expects net sales between $5.24 billion and $5.31 billion, reduced from the previous range of $5.3 billion to $5.4 billion. Adjusted earnings per share guidance was also cut to $1.00-$1.10, down from $1.05-$1.15. CEO Ryals McMullian cited softness in traditional loaf sales and a more intense competitive environment as key factors behind the lowered expectations. Despite these challenges, the company remains focused on investing in innovation and strategic acquisitions to align its portfolio with consumer preferences for better-for-you and value-oriented products.