Key facts
- J.M. Smucker now expects annual net sales to decline by 1% to 2%, an improvement from its previous forecast of a 3% to 4% decrease.
- The company raised its full-year adjusted earnings per share forecast to a range of $10.50 to $11.
- First-quarter net sales reached $2.22 billion, exceeding analysts' estimates.
- First-quarter adjusted earnings per share, excluding tariff refunds, were $3.24, surpassing expectations of $2.22.
J.M. Smucker, the maker of Folgers coffee, has forecast a smaller-than-expected decline in annual sales, citing steady demand for its coffee and ready-to-eat meals. The company's shares rose approximately 4% in premarket trading following the announcement and an improved annual profit forecast, partly due to tariff-related refunds.
Consumers facing persistent inflation are increasingly choosing to eat at home, boosting demand for essential grocery items like coffee and jams. This trend, coupled with easing coffee prices after recent surges attributed to higher green coffee costs and tariffs, has allowed J.M. Smucker to adjust its pricing.
For the first quarter ended July 31, the company reported net sales of $2.22 billion, surpassing analysts' average estimate of $2.13 billion. Gross profit for the quarter reached $504.9 million, which included $115.0 million in tariff refunds. On an adjusted basis, excluding these refunds, earnings per share were $3.24, exceeding the estimated $2.22.
Looking ahead, J.M. Smucker now projects its annual net sales to decrease by 1% to 2%, an improvement from its prior forecast of a 3% to 4% decline. The company also raised its full-year adjusted earnings expectation to a range of $10.50 to $11 per share, up from its previous outlook of $9.75 to $10.25 per share.