“Campbell’s adjusted earnings per share in the quarter ended July 30 were 52 cents, below analysts’ expectations. The company cut costs, with adjusted marketing and promotional expenses down 12%. Advertising agencies have been hurt by the recent pullback in spending by consumer-products companies.
Sales in the quarter fell 1.4% to $1.66 billion, below the $1.69 billion expected by analysts polled by Thomson Reuters. On an unadjusted basis, the company reported a profit of $440 million, or $1.04 a share, compared with a loss of $37 million, or 26 cents a share, from a year ago.” 1
Since consumers have begun to favor fresher foods, Campbell’s has tried to diversify by buying brands like Pacific Foods organic soup and Bolthouse Farms refrigerated juice.
However, with online shopping (Amazon) now being a grocery shopping alternative and meal services like Blue Apron, the competition has gotten much tougher.