Adds details and background throughout, analyst comment in paragraph 5, updates shares

By Koyena Das and Neil J Kanatt

March 11 (Reuters) - Campbell's Co CPB.O on Wednesday cut its annual sales and profit forecasts, as it struggles with weak demand, particularly for snacks such as pretzels and chips.

The Snack Factory pretzel maker also suspended share repurchases as it focuses on reducing debt, sending shares down about 8% in morning trading, touching its lowest level since 2003, at $22.66.

As of February 1, the company had $7.08 billion in debt, and about $473 million remaining under its current repurchase plans.

Campbell's recent price hikes, intended to protect margins from rising input costs, have hit sales as lower-income consumers in the U.S. cut back on spending amid rising living costs.

"Discretionary categories such as snacking continue to feel the brunt of soft consumer confidence," Michael Gunther, analyst at Consumer Edge, said.

The company's snack division sales declined 6% in the reported quarter, also hurt by shipment delays.

Campbell's also warned of pressures from revised U.S. tariffs, particularly on imports of its Rao's pasta sauce brand, which are mostly sourced from Italy and Georgia. It also faces pressures from existing tariffs on steel and aluminum.

"The newly imposed 10% global tariff under Section 122 will result in a modest increase to the company's second-half tariff headwind," CFO Todd Cunfer said.

Consumer companies are still grappling with a shifting tariff landscape after Washington implemented fresh levies on imports following the Supreme Court's decision to strike down the government's emergency duties.

The company aims to focus more on value packs and marketing to lift snack-segment sales, though analysts said such investments could further strain margins.

Campbell's no longer appears to have the pricing power it once commanded, CFRA analyst Arun Sundaram said.

The company expects fiscal 2026 organic net sales to fall between 1% and 2%, compared with its previous forecast of a 1% decline to a 1% rise, and cut its adjusted profit per share outlook to a range of $2.15 to $2.25, from $2.40 to $2.55.

For the second quarter ended February 1, net sales fell 5% to $2.56 billion, compared with the average analyst expectation of $2.61 billion. Adjusted profit per share came in at 51 cents, below the 57-cent expectation, according to data compiled by LSEG.

(Reporting by Koyena Das and Neil J Kanatt in Bengaluru; Editing by Shinjini Ganguli and Leroy Leo)

((koyena.das@thomsonreuters.com))