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Shares of the company fell 4.4% in trading before the opening
bell.
Upstart brands are winning more shelf space in supermarkets
across the United States from big packaged food companies,
including Smucker, as more consumers are willing to experiment
with new flavors and ingredients.
As a result, Smucker's overall sales fell 6.5% to $1.78 billion
in the first quarter ended July 31, below Wall Street's estimate
of $1.87 billion, according to IBES data from Refinitiv.
"Our first quarter performance fell short of our expectations
primarily due to the timing of shipments and deflationary
pricing in the coffee and peanut butter categories, as well as
competitive activity in the premium dog food category," said
Chief Executive Officer Mark Smucker.
The company cut its outlook for fiscal 2020 net sales, saying
that it now expects sales in the range of a 1% drop to flat. It
had previously estimated sales to rise 1% to 2%.
For the rest of the year, Smucker expects to earn between $8.35
per share to $8.55 per share, lower than its previous target of
$8.45 to $8.65.
Excluding one-time items, the company earned $1.58 per share in
the reported quarter, missing the estimate of $1.74.
Net income rose 16.2% to $154.6 million from a year earlier.
(Reporting by Nivedita Balu in Bengaluru; Editing by Anil
D'Silva)
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