09:15 AM EDT, 08/27/2025 (MT Newswires) -- J.M. Smucker's (SJM) fiscal first-quarter results fell more than Wall Street's expectations year over year, but the food producer lifted its full-year sales growth outlook mainly due to the strength of its coffee portfolio.

The Jif peanut butter maker on Wednesday posted adjusted earnings of $1.90 a share for the quarter ended July, down from $2.44 the year before and below the FactSet-polled consensus of $1.93. Sales ticked down 1% to $2.11 billion, just shy of the Street's view for $2.12 billion. The stock fell 4.1% in the most recent premarket activity.

"Our teams demonstrated agility throughout the organization, and though the external environment continues to be dynamic we are successfully managing what we can control," Chief Executive Mark Smucker said in the earnings release. "Our results reflect strong top-line growth, driven by consumer demand for our portfolio of leading brands, and bottom-line results that reflect disciplined cost management and execution."

For fiscal 2026, the Folgers and Cafe Bustelo coffee brands owner now anticipates sales to grow by 3% to 5% year over year, including the impact of certain divestitures, up from its prior projections for an increase of 2% to 4%. "With the momentum for our brands continuing into our first quarter, we are revising our full-year net sales expectations, primarily due to the strength of our coffee portfolio," Mark Smucker said in prepared remarks published on the company's website.

Comparable sales are estimated to increase roughly 5.5% at the midpoint for the ongoing fiscal year, reflecting pricing gains across its coffee portfolio in response to higher green coffee costs, and volume growth for some of its brands, Chief Financial Officer Tucker Marshall said in the prepared remarks. J.M. Smucker previously expected comparable sales to rise between 3.5% and 5.5%.

The food producer continues to forecast adjusted EPS to be in a range of $8.50 to $9.50 for fiscal 2026, while the Street is looking for $9.21. Tariffs are now expected to be a headwind of $0.50, representing a $0.25 increase from the company's previous guidance, due to higher US tariff rates mainly impacting its green coffee costs, according to Marshall.

Comparable sales inclined 2% in the first quarter, buoyed by a 6% boost from higher prices that was offset by a 4% decline in volume/mix, Marshall said. By segment, revenue climbed 15% to $717.2 million in the US retail coffee business. Retail pet food revenue slid 8%, while US retail frozen handheld and spreads decreased 2% to $484.7 million. Sweet baked snacks segment sales fell 24% to $253.2 million, while the international and away from home business logged revenue growth of 7%.

J.M. Smucker forecasts adjusted EPS to decline about 25% in the current three-month period, mainly driven by a decrease in adjusted gross profit in the US retail coffee, among other factors, according to Marshall. The company anticipates the metric to improve sequentially throughout the fiscal year, the CFO added.

Sales are expected to rise by low single digits for the quarter, while comparable sales are anticipated to see a mid-single-digit increase, Marshall said.