(Reuters) – Campbell’s Co lowered its annual sales and profit forecasts on Wednesday, signaling weak demand for snacks amid intense competition from cheaper private-label brands.
The company’s shares were down about 4% to $39 before the bell.
Consumer packaged food firms such as Campbell’s and PepsiCo have seen cautious spending from customers, particularly related to snacking, against the backdrop of repeated price hikes over the past year.
The company now expects fiscal 2025 net sales to rise between 6% and 8%, compared with its previous forecast range of 9% to 11% growth.
The revised forecast does not reflect any impact from the potential import tariffs by the U.S. government and potential retaliatory tariffs taken by other countries, Campbell’s said.
“Given the softness in some of our snacking categories, the anticipated sequential top line improvement did not materialize during the quarter, and now we have a more muted second half expectation,” Campbell’s CEO Mick Beekhuizen said.
Indications from recent economic data such as retail sales and consumer confidence have sparked worries of a slowing economy.
Campbell’s lowered its adjusted profit per share forecast to between $2.95 and $3.05, from prior expectations of $3.12 to $3.22.
For the quarter ended January 26, the company’s net sales rose 9% to $2.69 billion, compared with the average analyst estimate of $2.74 billion, according to data compiled by LSEG.
On an adjusted basis, Campbell’s earned 74 cents per share, compared with estimates of 72 cents.
(Reporting by Savyata Mishra and Neil J Kanatt in Bengaluru; Editing by Shounak Dasgupta)
