Simply Good Foods Company (SMPL) experienced a significant pre-market decline of 5.62% following the release of its second-quarter earnings results and forward-looking guidance.

The company reported quarterly sales of $326.013 million, which missed analyst estimates by 5.67% and represented a 9.35% decrease compared to the same period last year. While adjusted earnings per share of $0.45 exceeded expectations, investors focused on the revenue shortfall and concerning outlook.

Management provided guidance for fiscal year 2026 that projected net sales declining 7% to 10% year-over-year, gross margins contracting by 300-350 basis points, and adjusted EBITDA falling 19% to 22%. Additionally, third-quarter sales guidance anticipates a decline of 11% to 14% compared to the prior year period.