Overview
- The company tightened fiscal 2026 guidance to adjusted EPS of $8.75–$9.25 and GAAP EPS of $5.66–$6.16, with the midpoint below analysts’ estimates.
- Second-quarter net sales rose about 3% to $2.33 billion, slightly above expectations, while adjusted EPS of $2.10 matched forecasts.
- Profitability weakened as gross margin fell to 33.9% from 38.7% a year earlier and adjusted operating income declined roughly 20%.
- Pricing drove growth with overall prices up 11 percentage points as volumes fell 6 points, led by declines in U.S. coffee and pet food.
- Shares fell about 3% after the outlook as elevated green-coffee costs and recent tariffs on Brazilian imports pressured results, with any benefit from a partial tariff rollback likely to show up later.