UPDATE 2-Campbell's cuts annual forecasts, flags pressure from new import tariffs
Campbell's Company CPB | 22.01 | +0.09% |
PepsiCo, Inc. PEP | 157.01 | +1.53% |
Rewrites paragraph 1, adds background in paragraph 3, updates shares
March 11 (Reuters) - Campbell's Co CPB.O on Wednesday warned of increasing pressure in the second half of the year from the revised U.S. tariffs, after cutting its annual sales and profit forecasts citing rising macroeconomic risks.
Shares of the company were down about 5% in premarket trading.
Consumer companies, among the worst hit from President Donald Trump's tariffs, are navigating the latest uncertainty after the U.S. Supreme Court struck down the earlier levies.
Campbell's has also been struggling with weak demand as lower-income consumers increasingly prefer cheaper brands and store-label products. The company's price hikes in recent years - meant to protect margins from rising cost of beef, and metals like aluminum and steel - have also weighed on sales.
The company now expects fiscal 2026 organic net sales to fall between 1% and 2%, compared with its previous forecast of between a 1% fall and 1% rise.
It also expects fiscal 2026 adjusted profit per share between $2.15 and $2.25, lower than its previous forecast of $2.40 and $2.55.
For the quarter ended February 1, net sales fell 5% to $2.56 billion, compared with the average analyst estimate of $2.61 billion.
Adjusted profit per share came in at 51 cents, below analysts' average estimate of 57 cents, according to data compiled by LSEG.
