By Dean Seal
Campbell's cut its guidance in anticipation of a softer back half of the fiscal year as consumer pressures mount.
The maker of soups and snacks said Wednesday that it expects sales to rise 6% to 8% this year, instead of 9% to 11% as previously projected. Organic sales are now set to be flat at best or drop by up to 2%, rather than rise by up to 2%.
Chief Executive Mick Beekhuizen said Campbell's is seeing some weakness in its snacking categories and now has more muted expectations for the second half of fiscal 2025, citing a dynamic consumer environment.
The Camden, N.J., company is also guiding for adjusted earnings of $2.95 to $3.05 a share, down from a previous outlook for $3.12 to $3.22 a share.
Campbell's said the guidance doesn't reflect any impact from potential import tariffs by the Trump administration, or any potential retaliatory actions taken by other countries.
For the fiscal second quarter that ended Jan. 26, the company posted a profit of $173 million, or 58 cents a share, compared with $203 million, or 68 cents a share, in the same quarter a year ago. Adjusted earnings of 74 cents a share topped analyst forecasts by 2 cents.
Sales were up 9% at $2.69 billion, missing analyst projections for $3.74 billion, according to FactSet.
The gain came entirely from the company's acquisition of Sovos Brands, owner of Rao's pasta sauce. On an organic basis, sales were down 2% from lower prices as volumes came in flat.
Shares fell 5.5% to $38.11 in premarket trading.
Write to Dean Seal at dean.seal@wsj.com
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Sales were up 9% at $2.69 billion, missing analyst projections for $2.74 billion, according to FactSet. "Campbell's Expects More Muted Back-Half of Fiscal 2025" at 7:46 a.m. ET incorrectly said analyst projections were for $3.74 billion.
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Sales were up 9% at $2.69 billion, missing analyst projections for $2.74 billion, according to FactSet. "Campbell's Expects More Muted Back-Half of Fiscal 2025" at 7:46 a.m. ET incorrectly said analyst projections were for $3.74 billion.
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March 05, 2025 08:31 ET (13:31 GMT)
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