Campbell’s cuts annual forecasts as demand sags, shares slump by 5%

Shares of the company tumbled about 8% in ‌morning trading, touching ⁠their lowest ⁠level since 2003.

As of February 1, the company had about $172 million remaining under its anti-dilutive share buyback program, besides another $301 million under its strategic repurchase plan.

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, intended to protect margins from rising input costs, have also weighed on sales.

“Reducing debt remains a key focus going forward, with specific emphasis on minimizing working capital and capex needs,” CFO Todd Cunfer said.

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The company had $7.08 billion ⁠in debt, ‌as of February 1.
Campbell’s also warned revised U.S. tariffs could intensify cost pressures. “The newly imposed 10% global tariff under Section 122 will result in a modest increase to the ⁠company’s second-half tariff headwind,” Cunfer added.

The company now expects fiscal 2026 organic net sales to fall between 1% and 2%, compared with its previous forecast of a 1% decline to a 1% rise, while adjusted profit per share is projected between $2.15 and $2.25, below its earlier range of $2.40 to $2.55.

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.

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, noting that duties on steel and aluminum imports are proving especially costly.

Campbell’s no longer appears to have the pricing ⁠power it once commanded, he added.

The company aims to focus more on value packs and marketing promotions to lift snack-segment sales, though analysts note that such investments could add further pressure on margins.

Campbell’s said it is 85% hedged on commodities, including freight diesel, and that its guidance excludes any potential impact from the Iran conflict or a spike in oil prices.

For the second quarter ended February 1, net sales fell 5% to $2.56 billion, compared with the average analyst expectation of $2.61 billion. Adjusted profit per share came in at 51 cents, below the 57-cent expectation, according to data compiled by LSEG.