June 8 (Reuters) – Campbell’s on Monday reaffirmed its annual forecast, which it had trimmed earlier this year, and said the Middle East conflict has added pressure on already strained U.S. consumers.
Consumer sentiment sank to record lows in recent months as rising gasoline prices linked to the Iran war have squeezed household budgets already strained by stubborn inflation.
The pressure is pushing lower-income consumers toward cheaper, private-label brands, while the rise of GLP-1 weight-loss drugs is further denting demand, weighing on companies such as Campbell’s that lifted prices to offset higher commodity and tariff costs.
Campbell’s forecast fiscal 2026 organic sales to fall 1% to 2% and adjusted earnings per share at $2.15 to $2.25, factoring in early impacts from the Middle East conflict, including higher logistics costs, which it expects to offset through tariff refunds this quarter.
Oil near $100 a barrel could lift fiscal 2027 inflation 2% to 3% above normal levels, it said, adding that it would rely on cost-saving plans and price hikes if required.
CEO Mick Beekhuizen said Campbell’s is focusing on simplifying operations while accelerating productivity and cost savings.
The company identified its salty snacks business, including Snyder’s of Hanover, Kettle Brand and Pepperidge Farm, as the biggest opportunity, with plans to revive growth by prioritizing core brands, adjusting pack sizes and price points, and streamlining product range.
Campbell’s posted third-quarter adjusted profit of 50 cents per share, beating analysts’ average estimate of 48 cents, according to data compiled by LSEG.
“(The) road ahead likely remains long and tough,” RBC Capital Markets analyst Nik Modi said, adding that there is no clear catalyst that will get Campbell’s to work other than stronger or more consistent results.
Quarterly net sales of Campbell’s, set to drop out of the S&P 500 index this month, fell 4% to $2.37 billion, slightly missing analysts’ expectations. Its shares, down 22% in 2026, fell 2% in volatile trading.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Shilpi Majumdar)
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