By Elias Schisgall

Hormel Foods reported a lower profit in the second quarter and said its full-year profit would be lower than expected, despite reporting progress in its turnaround strategy.

The food company, whose brands include Planters, Skippy, and Spam, on Thursday said it expects to turn a full-year profit of between $1.28 and $1.37 a share, down from a range of $1.37 to $1.46 a share.

Analysts polled by FactSet are expecting full-year earnings of $1.46 a share.

One factor in the updated guidance was the sale of Hormel's whole-bird turkey business, which is expected to reduce full-year net sales by around $50 million. The company said it continues to expect full-year net sales between $12.2 billion and $12.5 billion.

Hormel reported a profit of $157.5 million, or 29 cents a share. That compares with a profit of $180 million, or 33 cents a share, a year earlier.

On an adjusted basis, earnings were 40 cents a share, ahead of analyst estimates of 35 cents a share, according to FactSet.

Revenue rose to $2.97 billion from $2.9 billion, beating analyst estimates of $2.96 billion.

In the company's retail segment, volumes fell 2%, while sales were flat year-over-year. The company said strong sales of products including Jennie-O ground turkey, Applegate meats, and the Herdez portfolio were partially offset by an exit from non-core private label snack nut items.

Sales rose 6% in the foodservice segment and 4% in the international segment. Both segments saw a 1% increase in volumes.

"Our teams are executing at a high level across the organization, driving impressive performance from our protein-centric portfolio," Hormel President John Ghingo said. "Each segment delivered both net sales and segment profit growth in the second quarter, reflecting broad-based strength across the business and the impact of our strategy."

The company has been working on cutting costs and revamping its distribution network while investing in technological improvements. It had previously raised prices in response to commodity inflation and reported a tailwind from high protein demand.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

May 28, 2026 06:38 ET (10:38 GMT)

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