Key Takeaways SJM raised coffee prices to counter green coffee inflation and tariff-driven import cost increases. U.S. Retail Coffee sales rose 11% in Q4 FY25 on stronger net pricing, though volume/mix stayed flat. FY26 outlook expects 20% pricing but a 10% volume drop as consumers react to higher coffee prices.The J.M. Smucker Company’s ((SJM) coffee prices are influenced by several factors like raw ingredient costs, tariffs, evolving consumer patterns and broader market volatility. The company has been ...

Key Takeaways SJM raised its quarterly dividend by 2% to $1.10 per share, marking 24 consecutive years of growth. SJM boasts a 4.1% yield and 43% payout ratio, supporting dividend sustainability. SJM plans to cut $500M in debt annually, targeting a 3.0x net debt/EBITDA ratio by fiscal 2027.The J.M. Smucker Co. (SJM) has once again rewarded its shareholders by increasing its quarterly dividend from $1.08 to $1.10 per share — a 2% hike. This marks the company’s 24th consecutive fiscal year of dividend growt ...

Core Viewpoint - The J.M. Smucker Company experienced a significant decline in share price following disappointing Q4 2025 financial results, leading to an investigation into potential securities law violations related to its Hostess Brands acquisition [1][2][8]. Financial Performance - In Q4 2025, SJM reported a comparable net sales decrease of 14% in the Sweet Baked Snacks segment, alongside an $867 million impairment charge related to goodwill and an additional $113 million impairment of the Hostess Brand trademark [6][8]. - The company had previously reported a comparable net sales decrease of 8% in Q3 2025, with a $794 million impairment charge related to goodwill and a $208 million impairment charge to the Hostess Brand trademark [6][7]. Hostess Brands Acquisition - SJM acquired Hostess Brands for approximately $5.5 billion on November 7, 2023, with $2.4 billion recorded as goodwill in the Sweet Baked Snacks segment [3][4]. - The acquisition included various Hostess brands and manufacturing facilities across multiple states [4][5]. Investor Reactions and Investigations - Following the Q4 results, SJM's share price fell by $17.44, or 15%, resulting in a loss of about $1.8 billion in shareholder value [8]. - Hagens Berman has initiated an investigation into whether SJM may have misrepresented the benefits of the Hostess acquisition and whether it delayed the recognition of impairment charges [2][9].

Core Insights - Food companies are facing increased price sensitivity, uneven volume trends, and challenges to brand loyalty as consumers seek value [1] - Companies that can protect margins, manage input costs, and adapt to changing consumption habits are likely to succeed [1] The J. M. Smucker Company (SJM) - SJM is undergoing a strategic transformation, focusing on portfolio optimization through acquisitions and divestitures, including the acquisition of Hostess Brands in late 2023 [3][4] - The Hostess acquisition enhances SJM's position in the snacking category, with a 3% year-over-year sales increase in its International and Away From Home segment [4] - Despite growth, SJM's adjusted gross profit declined by 9% year-over-year in the fiscal fourth quarter due to higher input costs and weaker volume [5] - SJM is increasing marketing investments for key brands, leading to a 3% rise in selling, distribution, and administrative expenses [6] Post Holdings, Inc. (POST) - POST is strengthening its position through consistent performance, with Foodservice segment net sales rising 9.6% year-over-year to $607.9 million in Q2 fiscal 2025 [7] - Strategic pricing actions have allowed POST to protect margins amid inflation, offsetting input cost inflation and volume softness [8][9] - POST's recent acquisitions, including 8th Avenue Food & Provisions and Potato Products of Idaho, support a diversified growth strategy [10] - POST benefits from a well-diversified portfolio and disciplined execution, positioning it as a resilient player in the food industry [11] Financial Comparisons - The Zacks Consensus Estimate for POST's fiscal 2025 EPS is $6.63, while SJM's estimate has decreased by 4% to $9.28 [12] - POST trades at a forward P/E of 14.54x compared to SJM's 11.1x, reflecting stronger earnings momentum for POST [13] - In the past three months, POST's stock has declined by 6.9%, outperforming SJM's 8.8% drop, justifying the valuation gap [13] Conclusion - SJM is in a rebuilding phase, focusing on long-term growth through portfolio reshaping, while POST is growing through strategic pricing and disciplined execution [16] - In the current inflation-sensitive market, POST is viewed as the safer and smarter investment choice [16]

Group 1: Lululemon Athletica - Lululemon's stock fell over 20% in a single trading day in June, ending the month down 25% [3][4] - Same-store sales grew by only 1% year over year, and operating margin decreased by 110 basis points to 18.5% [4] - The company reduced its earnings outlook for the full year by nearly 25% to $14.68 per share at the midpoint, while reaffirming sales growth guidance of 7% to 8% [4][5] - Lululemon is raising prices and diversifying sourcing channels to mitigate tariff impacts, with 75% of revenue coming from the Americas [5] - After the decline, Lululemon's stock is trading at a price-to-earnings (P/E) ratio of 16, less than half its five-year average P/E [5] Group 2: J.M. Smucker - J.M. Smucker's stock dropped 12.8% to a 52-week low of $93.30 per share in June, following a 3% decline in sales and a 13% decline in adjusted earnings per share (EPS) for Q4 of fiscal 2025 [6] - The decline was attributed to low demand for dog snacks and sweet baked goods, recent divestment of pet food brands, and rising costs [6] - Smucker anticipates total sales growth of only 2% to 4% in fiscal 2026, down from 7% last year, with adjusted EPS expected to fall by 11% [6] - Despite challenges, Smucker's Uncrustables brand reported double-digit sales growth in Q4 and is nearing $1 billion in sales [7] - The company is taking decisive actions to revive its sweet baked segment, which has struggled since acquiring Hostess Brands in 2023 [8]

Core Viewpoint - The J.M. Smucker Company reported mixed fourth-quarter fiscal 2025 results, with adjusted earnings exceeding estimates but net sales declining year over year, raising questions about future performance and investor sentiment [2][3][4]. Financial Performance - Adjusted earnings per share were $2.31, down 13% year over year, but above the Zacks Consensus Estimate of $2.25 [3]. - Net sales totaled $2,143.8 million, a 3% decline year over year, missing the Zacks Consensus Estimate of $2,191 million [4]. - Gross profit decreased by 10% due to elevated costs and unfavorable volume/mix, with adjusted gross profit falling 9% [5]. Segment Performance - U.S. Retail Pet Foods: Sales fell 13% to $395.5 million, with a significant adverse impact from volume/mix [6]. - U.S. Retail Coffee: Sales increased 11% to $738.6 million, supported by higher net price realization [7]. - Sweet Baked Snacks: Sales dropped 26% to $251 million, with a 72% decline in segment profit [9]. - International and Away From Home: Net sales rose 3% to $308.9 million, with a 13% increase in segment profit [10]. Financial Health - The company ended the quarter with cash and cash equivalents of $69.9 million and long-term debt of $7,036.8 million [11]. - Cash flow from operating activities was $393.9 million, with free cash flow at $298.9 million [12]. Future Outlook - Fiscal 2026 net sales are expected to increase by 2% to 4%, with comparable net sales anticipated to rise by 3.5% to 5.5% [13]. - Adjusted EPS for fiscal 2026 is projected to be between $8.50 and $9.50, down from $10.12 in fiscal 2025 [13]. - The consensus estimate has shifted downward by 11.4% since the earnings release, indicating a negative trend in investor sentiment [14]. Industry Context - Smucker operates within the Zacks Food - Miscellaneous industry, where competitor United Natural Foods reported a revenue increase of 7.5% year over year [17]. - United Natural has a Zacks Rank of 3 (Hold) and a VGM Score of A, contrasting with Smucker's Zacks Rank of 5 (Strong Sell) [18].

Core Viewpoint - Robbins LLP is investigating The J.M. Smucker Company for potential violations of securities laws and breaches of fiduciary duties by its officers and directors [1]. Group 1: Company Overview - The J.M. Smucker Company manufactures and markets food products across the United States [1]. Group 2: Legal Investigation - The investigation by Robbins LLP aims to determine if there have been any violations of securities laws by the company's executives [1]. - Shareholders who have incurred losses in their investments are encouraged to contact Robbins LLP for information regarding their rights [1]. Group 3: Robbins LLP Background - Robbins LLP has been active in shareholder rights litigation since 2002, focusing on helping shareholders recover losses and improve corporate governance [2]. - The firm has successfully obtained over $1 billion for shareholders since its inception [2].

Core Insights - The J.M. Smucker Co. announced the planned retirement of Chief Marketing Officer Gail Hollander, effective April 2026, and will begin the search for her replacement [1] - CEO Mark Smucker praised Hollander's contributions to building a strong marketing organization that has supported the growth of the company's iconic brands [1] - Hollander has been with the company since 2023, following a 20-year career at Publicis Groupe, where she played a key role in enhancing Smucker's brand marketing strategy [1][2] Company Overview - The J.M. Smucker Co. offers a diverse portfolio of brands in North America, leading in categories such as coffee, peanut butter, fruit spreads, and pet food [3] - The company is committed to producing quality products and operating responsibly, aiming to make a positive impact on society while growing its business [3]

Group 1: Company Overview - The J. M. Smucker Company (SJM) is facing challenges entering fiscal 2026, with gross margin pressures due to cost inflation, unfavorable product mix, and soft volumes [1] - In Q4 of fiscal 2025, SJM reported a 9% year-over-year decline in adjusted gross profit and an 8% drop in adjusted operating income, primarily due to higher costs and reduced sales volume [1][8] Group 2: Financial Forecast - SJM expects the fiscal 2026 adjusted gross profit margin to be between 35.5% and 36%, influenced by elevated commodity and manufacturing costs, as well as negative volume/mix [2] - The company anticipates a 3% year-over-year increase in selling, distribution, and administrative expenses in fiscal 2026, driven by higher marketing investments for key growth brands [3] Group 3: Strategic Focus - SJM is focusing on brand investment and operational efficiency to overcome margin pressures, which will require disciplined cost control and sustained consumer demand [4] - The total marketing spend is projected to reach 5.7% of net sales, an increase of 30 basis points from the previous year, aimed at supporting brands like Cafe Bustelo and Uncrustables [3][8] Group 4: Industry Context - SJM's peers, such as Conagra Brands and Lamb Weston, are also managing inflationary pressures and shifting consumer demand, with Conagra facing a 389 basis point decline in adjusted gross margin due to elevated costs [5] - Lamb Weston reported a 9% global volume growth while executing over 30 strategic projects, despite a 5% decline in price/mix due to pricing adjustments [6] Group 5: Stock Performance and Valuation - SJM shares have decreased by 5.5% over the past year, contrasting with the industry's growth of 3.1% [7] - The company trades at a forward price-to-earnings ratio of 11.06X, below the industry average of 16.01X [10]

Core Viewpoint - Johnson Fistel, PLLP is investigating potential violations of securities laws by The J. M. Smucker Company and its executives regarding misrepresentation or failure to disclose material information to investors [1] Group 1: Investigation Details - The investigation is focused on whether The J. M. Smucker Company misrepresented or failed to timely disclose material information to investors [1] - Investors who purchased SJM securities and suffered losses are encouraged to join the investigation [2] - Individuals with relevant nonpublic information are advised to consider assisting the investigation or utilizing the SEC Whistleblower program, which may offer rewards up to 30% of any successful recovery [3] Group 2: About Johnson Fistel, PLLP - Johnson Fistel, PLLP is a nationally recognized shareholder rights law firm with multiple offices across the United States, representing both individual and institutional investors [4] - The firm has been ranked in the Top 10 Plaintiff Law Firms by ISS Securities Class Action Services in 2024, having recovered approximately $90,725,000 for clients in lead or co-lead counsel cases [5]