Hormel Foods, the Minnesota‑based maker of Skippy peanut butter and a host of other packaged foods, announced Thursday that it is trimming its fiscal 2026 net‑sales projection. The company now expects sales of $12.1 billion to $12.2 billion, down from the prior range of $12.2 billion to $12.5 billion.
Weak retail segment and snack‑nut sales drive the downgrade
The revision reflects a 4 percent decline in sales and a 9 percent drop in volume within Hormel’s retail segment, the company’s largest revenue source. In addition, demand for private‑label snack nuts has softened, adding pressure to the overall outlook.
“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,” said CEO‑elect John Ghingo, who took the helm last month.
Quarterly performance and earnings outlook
Hormel’s third‑quarter revenue fell 2.4 percent to $2.96 billion, missing analysts’ estimate of $3.04 billion. The shortfall was driven by weaker demand in both retail and international markets.
Despite the sales dip, the company raised its full‑year adjusted earnings‑per‑share forecast to a range of $1.45 to $1.51, up from $1.43 to $1.51 previously. Adjusted net income per share for the quarter came in at 37 cents, beating the consensus expectation of 35 cents, according to LSEG data.
Strategic moves and portfolio focus
During the quarter Hormel completed the divestiture of its Brazilian business under the CERATTI brand, a step aimed at streamlining the portfolio and concentrating resources on higher‑growth markets.
The company also announced a leadership change in its finance function. Former Tyson Foods executive Ash Bhumbla will assume the role of chief financial officer in September, succeeding longtime Hormel veteran John Ghingo as chief executive officer.
Broader industry context
The food‑packaging sector continues to grapple with inflationary pressures and higher living costs that are squeezing household budgets. Consumers are pulling back on discretionary items, including snack‑nut purchases, which has contributed to the muted demand Hormel reports.
Analysts note that while the current environment presents challenges, Hormel’s focus on core brands and strategic divestitures may position the company for steadier growth once consumer confidence rebounds.
Outlook
Hormel expects organic sales growth of 1 percent to 2 percent for the year, narrowing from its earlier 1 percent to 4 percent range. The company remains committed to delivering value to shareholders while navigating a pressured consumer landscape.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
