By Koyena Das and Neil J Kanatt
March 11 (Reuters) – Campbell’s Co on Wednesday warned revised U.S. tariffs will intensify cost pressures in the second half of the year, after the food maker cut its annual sales and profit forecasts, citing rising macroeconomic risks.
Consumer companies, among the worst hit from President Donald Trump’s tariffs, are navigating the latest uncertainty after the U.S. Supreme Court struck down the earlier levies.
Campbell’s has been struggling with weak demand as lower-income consumers cut back on spending amid rising living costs. The company’s price hikes in recent years – meant to protect margins from rising input costs – have also weighed on sales.
The company now expects fiscal 2026 organic net sales to fall between 1% and 2%, compared with its previous forecast of between a 1% fall and 1% rise, while adjusted profit per share is expected between $2.15 and $2.25, lower than its previous forecast of $2.40 and $2.55.
Shares of the company were down about 5% in premarket trading.
Analysts, including RBC Capital Markets’ Nik Modi, remain cautious, citing underperformance in the snacks segment, particularly as PepsiCo’s Frito‑Lay unit cuts prices and relaunches key competitor brands.
“Tariffs are eating into the company’s margins,” CFRA analyst Arun Sundaram said, citing a greater impact from tariffs on steel and aluminum imports in particular.
Campbell’s does not seem to have the pricing power it once commanded, and will likely need to deepen investment in snacks to stabilize the business, though that would add further pressure on margins, he added.
For the quarter ended February 1, net sales fell 5% to $2.56 billion, compared with the average analyst estimate of $2.61 billion.
Adjusted profit per share for the second quarter came in at 51 cents, below analysts’ average estimate of 57 cents, according to data compiled by LSEG.
(Reporting by Koyena Das and Neil J Kanatt in Bengaluru; Editing by Shinjini Ganguli and Leroy Leo)
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