Simply Good Foods Q4 revenue beats estimates; cuts guidance
SMPL•Simply Good Foods reported Q4 revenue of $333.3 million and adjusted EPS of $0.44, both above analyst estimates, while revenue fell 10%. It expects FY27 net sales to decline 13%-17% year over year.
1. Quarterly results
Q4 revenue fell 10% to $333.3 million, above the $327.1 million analyst estimate. Adjusted EPS was $0.44, beating the $0.41 estimate; EPS was $0.34 and net income was $30.5 million.
2. FY27 outlook
The company expects FY27 net sales to decline 13%-17% year over year and adjusted EBITDA to fall 9%-14%. It expects gross margin to increase 250-300 basis points year over year.
3. Sales pressures
The company cited weaker retail takeaway and velocity-related distribution pressure for the sales decline. Lower gross profit reflected volume declines, higher input costs and restructuring costs; it also said it accelerated cost-structure improvements and overhauled marketing across its brands.
