Campbell's Q2 Sales Drop 5% as Snacks Earnings Plunge 39%, Outlook Cut
Campbell's reported second-quarter net sales of $2.6 billion, down 5%, with its snacks division posting a 6% sales drop and a 39% plunge in operating earnings. The company cut its full-year outlook to organic net sales of $9.97 billion (down 1–2%), adjusted EBIT off 17–20% and adjusted EPS down 23–26%.
1. Second-Quarter Financial Performance
Campbell's net sales slumped by 5% to $2.6 billion in the quarter ending Feb. 1. The snacks division saw a 6% sales decline and a 39% drop in operating earnings due to cost inflation, tariffs and supply chain expenses, while the meals and beverages division posted a 4% sales fall and a 15% earnings drop.
2. Full-Year Guidance Revision
The company lowered its full-year organic net sales forecast to roughly $9.97 billion, a 1–2% decline versus prior guidance. Adjusted EBIT is now expected to fall 17–20% and adjusted EPS by 23–26%, reflecting a more cautious outlook given ongoing cost pressures.
3. Strategic Actions and Leadership Changes
To stabilize its snacks business, Campbell's appointed Mohit Anand as division head, replacing Elizabeth Duggan, and plans new product innovation alongside cost-cutting measures. The company also announced the closure of its Cape Cod potato chips plant in Hyannis, Massachusetts.