Hain Celestial (HAIN)

The natural and organic food industry including Hain Celestial (HAIN - Analyst Report) is facing the brunt of the economic slowdown and escalating costs.

The ongoing turmoil and the battered financial market are exerting pressure on consumer disposable incomes triggering a shift in focus from higher priced organic products to cheaper private label brands. Consequently, retailers and distributors are being compelled to reduce inventories, thus, exerting pressure on the company s sales growth.

Furthermore, a strong U.S. dollar continues to moderate results, adversely impacting the top-line. In the most recent quarter, earnings were well below the Zacks Consensus Estimate, and were down 17.6% year over year.