Overview
- Q2 net sales rose 3% to $2.33 billion and adjusted EPS came in at $2.20, matching consensus.
- Profitability weakened with gross margin down to 33.9% from 38.7% and adjusted operating income down 20%.
- Comparable sales reflected an 11-point lift from pricing offset by a 6-point drop from volume and mix, including declines in coffee, peanut butter and dog snacks.
- Full-year guidance tightened to GAAP EPS of $5.66–$6.16, adjusted EPS of $8.75–$9.25 and sales of $9.031–$9.119 billion, now below Street expectations.
- Higher coffee costs and tariffs are pressuring margins, with executives citing about $75 million in additional winter costs, and shares fell roughly 3% after the report.