Hormel Foods cuts annual sales forecast as sluggish consumer demand weighs

• Its retail segment, Hormel's biggest revenue generator, reported a 4% decline in sales, while volumes fell 9%.
• The maker of Skippy peanut butter forecast fiscal 2026 net sales of $12.1 billion to $12.2 billion, compared with its prior forecast of $12.2 billion to $12.5 billion, and narrowed its range for organic sales growth expectation to 1% to 2%, from 1% to 4% previously.
• The company's third-quarter revenue fell 2.4% to $2.96 billion, missing analysts' estimate of $3.04 billion, hurt by weaker demand in its retail and international businesses.
• During the quarter, Hormel completed the divestiture of its Brazilian business under the CERATTI brand as part of efforts to streamline its portfolio and focus on higher-growth markets.
• Hormel raised its full-year adjusted earnings per share forecast to between $1.45 and $1.51, from $1.43 to $1.51.
• The company's quarterly adjusted net income per share was 37 cents, compared with expectations of 35 cents, according to data compiled by LSEG.

Hormel Foods cut its annual sales forecast on Thursday, weighed down by declines in the retail segment and weak demand for private-label snack nuts amid a pressured consumer environment.

Consumer demand across the packaged-food industry has remained subdued, with broader inflationary pressure and higher living costs squeezing consumer wallets.

• Shares of the Minnesota-based firm were down 1% in premarket trading.
• "The results reflected the impacts of portfolio-shaping actions, lower commodity-based pricing in portions of the business and a consumer environment that remains under pressure," CEO-elect John Ghingo said.