Smithfield Foods trims full-year forecasts as consumers rein in spending

Aug 11 (Reuters) - Smithfield ‌Foods cut its ​annual ​total sales and adjusted operating profit forecasts on Tuesday, citing ongoing challenges including cautious ‌consumer spending and higher input costs.

Shares of the ⁠company were down 3% in premarket trading.

Inflation slowed more than expected ‌in June, driven by ‌lower energy prices, but consumer budgets remain stretched and shoppers are buying smaller packs or trading down.

Sales of ​its Hog Production unit fell 8.2% to $772 million from last year.

President Donald Trump has been considering ⁠potential executive actions to reduce tariffs on beef imports and regulations on producers ​as part of an attempt to lower domestic beef prices.

Peer Tyson Foods last week also ​lowered its annual profit forecast, ‌warning that losses in its beef business would widen as tight U.S. cattle supplies ⁠keep livestock costs elevated.

Smithfield Foods now expects fiscal 2026 sales to be roughly flat, compared with its prior expectations of ⁠low-single-digit percentage growth.

The company also expects adjusted operating profit between $1.23 ​billion and $1.38 billion, compared with its prior forecast of $1.33 billion to $1.48 billion.

However, it beat second-quarter sales and profit estimates.

For the three ‌months ended June 28, Smithfield logged sales of $3.7 billion, slightly beating analysts' estimates of $3.68 ‌billion, according to data compiled by LSEG.

It earned 62 ⁠cents per share on ‌an adjusted basis, above ​expectations of 60 cents.

(Reporting by Koyena Das in Bengaluru; Editing by Mrigank Dhaniwala and Devika ‌Syamnath)

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