01:00 PM EDT, 08/28/2024 (MT Newswires) -- J.M. Smucker (SJM) lowered its fiscal 2025 guidance amid a slowdown in the convenience channel while the food producer unexpectedly advanced first-quarter earnings year over year.

The food producer now forecasts sales growth of 8.5% to 9.5% this fiscal year, down from its earlier guidance in the 9.5% to 10.5% range. Comparable net sales, which excludes the Hostess Brands acquisition and recent divestitures, is expected to increase by 0.5% to 1.5%, down from 1.5% to 2.5% previously.

The Jif peanut butter maker's fiscal 2025 adjusted EPS target was reduced to between $9.60 and $10 from the $9.80 to $10.20 previous range. Analysts surveyed by Capital IQ are modeling for revenue of $8.98 billion and normalized EPS of $10.02 in the ongoing year. Shares of J.M. Smucker fell 5.7% in Wednesday trade.

"In the convenience channel, we did see a bit of an acceleration in consumers shopping less, or less frequently," Chief Executive Mark Smucker told analysts on a conference call, according to a Capital IQ transcript. "And although we did see some of that earlier, it did seem to accelerate a bit in the quarter."

While J.M. Smucker is still growing share in the sweet baked snacks category, "consumers have been a bit more cautious and have less discretionary income to spend," Smucker said. "That is why we have seen a bit of an impact on both sweet baked snacks and pet snacks," he said.

For the first quarter, adjusted earnings per share climbed to $2.44 from $2.21 year over year and topped the average analyst estimate of $2.17 on Capital IQ. Revenue rose to $2.13 billion for the three months ended July 31 from $1.81 billion and was virtually in line with expectations.

Comparable net sales increased 1%, aided by a 1 percentage point increase from volume and mix, primarily reflecting increases for the Uncrustables, Cafe Bustelo and Meow Mix brands. They were partially offset by lower contract manufacturing sales related to divested pet food brands and a softer Dunkin' brand performance.

"We are pleased with the strong start of our fiscal year and ability to deliver net sales and earnings growth in what remains a dynamic consumer environment," Mark Smucker said in a statement.

Price: 113.56, Change: -7.14, Percent Change: -5.92