(Bloomberg) -- J.M. Smucker Co. Chief Executive Officer Mark Smucker said consumers struggling with higher costs, combined with persistent price inflation for coffee purchases, led the company to cut guidance for the year.
“Where we saw a little softness was really due to consumers being a little more selective and having less dollars in their pocket for discretionary spending,” the CEO said in an interview. “That’s why we saw a bit of impact to pet snacks and snacks, which would be sweet bake snacks or hostess, because those are truly discretionary.”
The Twinkies and Folgers owner expects full-year adjusted earnings per share of $9.60 to $10, down from $9.80 to $10.20 previously. That’s lower than the average analyst estimate of $10.03.
The company’s coffee costs were higher than expected in the fiscal first quarter, prompting it to announce plans to increase prices in early October. “We have seen persistent inflation on coffee,” Smucker said.
Smucker’s shares fell as much as 3.9% in premarket trading in New York. The stock was down 4.5% this year as of Tuesday’s close.
©2024 Bloomberg L.P.
