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J.M. Smucker's Pet Food Sales Soft: Is Demand Normalizing Yet?
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Key Takeaways
J.M. Smucker's U.S. Retail Pet Foods sales declined 7% to $413.2M amid continued category normalization.
SJM saw volume and mix cut sales by 8 points due to weaker dog snacks and lapped divested brands.
J.M. Smucker's segment profit rose 2% as pricing and lower costs drove a 280-basis-point margin gain.
The J. M. Smucker Company’s (SJM - Free Report) U.S. Retail Pet Foods segment delivered soft top-line results in the second quarter of fiscal 2026, underscoring ongoing normalization across the category following elevated activity in prior periods. Segment net sales declined 7% year over year to $413.2 million, reflecting pressure largely due to volume and mix, while pricing offered some relief.
Volume and mix reduced segment net sales by 8 percentage points during the quarter. Management attributed this decline primarily to lower dog snacks sales and the lapping of contract manufacturing revenues associated with pet food brands that were divested in the prior year. Net price realization contributed 1 percentage point to net sales, reflecting higher pricing across the pet food portfolio. While this helped partially offset volume declines, it was not sufficient to fully counter the softness in dog snacks.
Performance within the segment remained mixed across categories. Dog snacks represented the primary area of weakness, continuing to pressure overall segment results. However, management noted that the dog snacks category has shown improvement in more recent periods. In contrast, cat food delivered growth during the quarter, providing a partial offset to declines in dog-related products and supporting overall segment performance.
Despite the decline in net sales, profitability improved. Segment profit increased 2% year over year to $124.4 million, and the segment profit margin expanded 280 basis points to 30.1%. Management attributed the margin expansion to lower costs and higher net price realization, which more than offset the impact of unfavorable volume and mix.
Overall, while The J. M. Smucker’s pet food segment sales remained soft in the second quarter, results indicate the segment is gradually settling into more normal demand patterns after the unusual comparisons of the prior year.
Image Source: Zacks Investment Research
J. M. Smucker, which currently carries a Zacks Rank #3 (Hold), has seen its shares dip 1.6% in the past year compared with the industry’s decline of 15.4%.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago figures. MAMA delivered a trailing four-quarter earnings surprise of 133.3%, on average.
United Natural Foods, Inc. (UNFI - Free Report) engages in the distribution of natural, organic, specialty, produce, and conventional grocery and non-food products. It currently sports a Zacks Rank #1. United Natural Foods delivered a trailing four-quarter earnings surprise of 52.1%, on average.
The Zacks Consensus Estimate for United Natural Foods’ current fiscal-year sales and earnings implies growth of 1% and 187.3%, respectively, from the year-ago figures.
McCormick & Company, Incorporated (MKC - Free Report) manufactures, markets, and distributes spices, seasoning mixes, condiments and other flavorful products to the food industry. It carries a Zacks Rank #2 (Buy) at present. MKC delivered a trailing four-quarter earnings surprise of 2.2%, on average.
The Zacks Consensus Estimate for McCormick’s current fiscal-year sales and earnings indicates growth of 1.6% and 2.4%, respectively, from the year-ago figures.
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J.M. Smucker's Pet Food Sales Soft: Is Demand Normalizing Yet?
Key Takeaways
The J. M. Smucker Company’s (SJM - Free Report) U.S. Retail Pet Foods segment delivered soft top-line results in the second quarter of fiscal 2026, underscoring ongoing normalization across the category following elevated activity in prior periods. Segment net sales declined 7% year over year to $413.2 million, reflecting pressure largely due to volume and mix, while pricing offered some relief.
Volume and mix reduced segment net sales by 8 percentage points during the quarter. Management attributed this decline primarily to lower dog snacks sales and the lapping of contract manufacturing revenues associated with pet food brands that were divested in the prior year. Net price realization contributed 1 percentage point to net sales, reflecting higher pricing across the pet food portfolio. While this helped partially offset volume declines, it was not sufficient to fully counter the softness in dog snacks.
Performance within the segment remained mixed across categories. Dog snacks represented the primary area of weakness, continuing to pressure overall segment results. However, management noted that the dog snacks category has shown improvement in more recent periods. In contrast, cat food delivered growth during the quarter, providing a partial offset to declines in dog-related products and supporting overall segment performance.
Despite the decline in net sales, profitability improved. Segment profit increased 2% year over year to $124.4 million, and the segment profit margin expanded 280 basis points to 30.1%. Management attributed the margin expansion to lower costs and higher net price realization, which more than offset the impact of unfavorable volume and mix.
Overall, while The J. M. Smucker’s pet food segment sales remained soft in the second quarter, results indicate the segment is gradually settling into more normal demand patterns after the unusual comparisons of the prior year.
Image Source: Zacks Investment Research
J. M. Smucker, which currently carries a Zacks Rank #3 (Hold), has seen its shares dip 1.6% in the past year compared with the industry’s decline of 15.4%.
3 Solid Consumer Staple Stocks
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago figures. MAMA delivered a trailing four-quarter earnings surprise of 133.3%, on average.
United Natural Foods, Inc. (UNFI - Free Report) engages in the distribution of natural, organic, specialty, produce, and conventional grocery and non-food products. It currently sports a Zacks Rank #1. United Natural Foods delivered a trailing four-quarter earnings surprise of 52.1%, on average.
The Zacks Consensus Estimate for United Natural Foods’ current fiscal-year sales and earnings implies growth of 1% and 187.3%, respectively, from the year-ago figures.
McCormick & Company, Incorporated (MKC - Free Report) manufactures, markets, and distributes spices, seasoning mixes, condiments and other flavorful products to the food industry. It carries a Zacks Rank #2 (Buy) at present. MKC delivered a trailing four-quarter earnings surprise of 2.2%, on average.
The Zacks Consensus Estimate for McCormick’s current fiscal-year sales and earnings indicates growth of 1.6% and 2.4%, respectively, from the year-ago figures.