Campbell's Cuts Dividend, Forecasts Weaker Fiscal 2027 Sales
Campbell Soup Company (CPB) has cut its quarterly dividend by 36%, reducing it to $0.25 per share from $0.39, as part of efforts to strengthen its balance sheet and address ongoing cost pressures in the snacks segment. The company also projected a net sales decline between 2% and 4% for fiscal 2027, with adjusted earnings expected to range between $1.65 and $1.80 per share—below analyst expectations of $1.86. The guidance reflects challenges from inflationary pressures and shifting consumer preferences toward private-label products. Campbell's announced a new cost-savings initiative targeting $500 million by fiscal 2030, including plant closures and workforce reductions already underway. In the fourth quarter ended August 2, net sales fell 8% to $2.14 billion with an organic decline of 1%. The company reported adjusted earnings per share at $0.39 but a net loss on a reported basis due to trademark impairments. Campbell's stock dropped nearly 6% before the market opened following the announcement.
Tickers: $CPB
Topics: cost pressures debt reduction dividends sales guidance