J.M. Smucker Reports 4Q Sales Decline, Snack Category Falls 72%

J.M. Smucker, maker of Jif peanut butter and Folger’s coffee, posted disappointing earnings in the last quarter. For the year, the company sees tariffs, high prices, and a shift in consumer habits as the main headwinds moving forward.

For the three-month period that ended April 30, the Orrville, Ohio-based company revealed a profit loss of $729 million, or $6.85 per share. In contrast, J.M. Smucker earned $245.1 million, about $2.31 a share, in net income for the same period last year.

Revenue fell from $2.21 billion to $2.14 billion. Wall Street analysts predicted $2.18 billion.

For fiscal year 2026, J.M. Smucker is projecting sales growth between 2% and 4%, with comparable sales ranging from 3.5% to 5.5%. Adjusted earnings per share of $8.50 to $9.50 are expected.

The food conglomerate saw increased sales in its U.S. retail coffee business fueled by increased pricing on J.M. Smucker’s Folger’s and Café Bustelo brands. However, tariffs on coffee beans, which the company sources from Vietnam and Brazil, could impact the current quarter’s earnings.

Meanwhile, sales in the U.S. pet foods group plunged 13%. J.M. Smucker noted that a decrease in dog snacks and reduced manufacturing sales contributed to the decline.

J.M. Smucker’s sweet baked snacks category experienced a 14% decline in sales. Price drops and weak demand for snack cakes, donuts, and private label products were behind the poor performance of the segment. With higher costs, profit suffered in this group, dropping a significant 72% in the last quarter.

J.M. Smucker’s Ongoing Challenges

According to J.M. Smucker, the earnings results reflect a divestiture of several brands over the past 18 months alongside the purchase of Hostess Brands. For the company’s predicted 2026 outlook, ever-shifting U.S. tariff polices, changes in consumer behavior, and inflation were primary factors.

“We acknowledge that we continue to operate in a dynamic environment including evolving macroeconomic factors, record-high green coffee costs, implications from tariffs, regulatory and policy changes, and consumers that continue to seek value,” said CEO Mark Smucker, per Barron’s.

J.M. Smucker’s snack business could be further hindered by the popularity of weight management drugs that suppress appetites for sweet treats. In addition, the U.S. government’s crackdown on processed foods and artificial ingredients could force ingredient adjustments of several company products, which will likely lead to a search for new suppliers and short-term harm to the bottom line.

“Consumers are going to continue to snack, but looking for different things, it might be smaller portion sizes, in some cases, it might be less sugar,” said Smucker. “And we just have to make sure that what we remain focused on is providing the consumer with choice and options.”