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)
