Campbell Soup Co. reported a fourth-quarter net sales decline of 8% to $2.14 billion, slightly missing analyst expectations, as weak consumer demand continued to weigh on the packaged food giant. Adjusted earnings per share of 39 cents matched forecasts, but the company’s outlook for fiscal 2027 signaled further pressure.
Management now expects net sales to decline between 2% and 4% in fiscal 2027, a steeper drop than the 0.8% decline projected by analysts. Adjusted EPS is forecast at $1.65 to $1.80, below the $1.86 estimate. The company also announced a one-third reduction in its dividend, a move aimed at preserving cash amid rising cost pressures.
Campbell Soup has implemented average price increases of 4% to 5% across roughly 60% of its portfolio, though volumes in the snacks segment fell 6% while prices rose 1%. In contrast, the meals and beverages segment saw volumes increase 3% with stable pricing. The company expects pricing benefits to materialize in the second quarter, even as sales volumes remain under pressure.
Chief Executive Officer Mick Beekhuizen described the results as "unacceptable" and said the company would take aggressive steps to address the challenges. Chief Financial Officer Todd Cunfer highlighted the planned cost savings initiative, targeting $500 million in savings by fiscal 2030 through plant closures and job cuts. Additional selective price increases are also planned to offset rising raw material and logistics costs.
Analysts noted Campbell Soup’s shift toward self-help measures, including cost reductions and strategic pricing, as necessary steps to restore profitability in a challenging consumer environment. Barclays analyst Andrew Lazar characterized the approach as "a much more aggressive self-help stance," while eMarketer analyst Suzy Davidkhanian emphasized the need for innovation and packaging changes to rebuild consumer preference beyond nostalgia.
