By Dean Seal

Shares of Simply Good Foods slid after the company said elevated input costs ate into its fourth-quarter margins and that sales could decline in the current fiscal year.

The stock was down 7.9% at $23 in premarket trading. Shares had already lost 36% year-to-date when the market closed Wednesday.

The packaged-foods maker said before the opening bell that sales could fall as much as 2% or rise as much as 2% in fiscal 2026, which started Aug. 31. Analysts surveyed by FactSet had been expecting a gain of 2.7%.

The Denver-based company said it expects gross margins to decline by between 100 and 150 basis points year-over-year. They fell 450 basis points in the fourth quarter from rising input costs.

Sales in the fourth quarter dropped 1.8% to $369 million, just ahead of analyst estimates, according to FactSet.

But the company swung to a loss of $12.2 million, or 12 cents a share, compared with a profit of $29.5 million, or 29 cents a share, in the same quarter a year earlier.

Stripping out one-time items, adjusted earnings were 46 cents a share, a penny below analyst forecasts.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

October 23, 2025 08:31 ET (12:31 GMT)

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