Hormel misses quarterly sales estimates on weak retail demand

Feb 26 (Reuters) - Skippy peanut butter ‌maker Hormel Foods ​missed ​quarterly sales estimates on Thursday, reflecting U.S. consumers' shift towards cheaper alternatives amid economic uncertainty.

The packaged-food maker had hiked ‌prices in fiscal 2025 to counter soaring costs of commodities ⁠such as beef and pork, which were triggered in part by tariff-related uncertainty. But ‌this came at a time ‌when consumers were tightening budgets amid persistent inflation and economic uncertainty.

Hormel also faces pressures in its retail segment, a major revenue contributor, ​from several factors, including its strategic exit from select non-core private‑label snack nut items and softer demand for branded and private-label ⁠packaged deli products.

First-quarter sales volumes in its retail segment declined 6%, compared with a 4% fall ​a year ago.

The company also reaffirmed its annual net sales forecast in the range of $12.2 billion to $12.5 billion, in ​line with expectations of $12.38 billion. It ‌continues to expect 2026 adjusted profit per share between $1.43 and $1.51, compared with estimates of $1.47.

The forecast does not include the ⁠impact of the company’s sale of its struggling whole‑bird turkey business to Life‑Science Innovations in February, Hormel said. However, it anticipates the deal to reduce ⁠about $50 million from fiscal 2026 net sales, with a minimal impact on its adjusted ​earnings per share.

Earlier this month, peers General Mills cut its annual forecasts on softer demand, while meatpacker Tyson Foods posted higher-than-expected quarterly earnings as increased demand ‌for its chicken products overshadowed hefty losses in its beef business.

Hormel, which also sells snacking and packaged meat ‌products, posted quarterly sales of $3.03 billion, compared with analysts' estimates of $3.07 billion, ⁠as per data compiled by ‌LSEG.

The company posted adjusted ​earnings of 34 cents per share, compared with expectations of 32 cents.

(Reporting by Krisha Bhatt in Bengaluru; Editing by ‌Leroy Leo)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Is the global equity rally broadening? UBS weighs in
• CoStar Group acquires Zonda for $800M, adding new home data
• Beike (BEKE) PT Raised to $23 at Morgan Stanley