10:38 AM EDT, 07/10/2025 (MT Newswires) -- Simply Good Foods ( SMPL ) narrowed its full-year outlook on Thursday amid inflation and tariff headwinds, as the nutritional food company's fiscal third-quarter sales fell short of market expectations.

The company expects fiscal 2025 adjusted earnings before interest, taxes, depreciation and amortization to rise between 4% and 5%, lowering the 6% top end of its prior growth guidance.

Simply Good Foods ( SMPL ) now projects revenue to increase 8.5% to 9.5%, reducing the high end of its previous outlook from 10.5%. The FactSet-polled consensus view is for revenue to improve to $1.46 billion from the previous year's $1.33 billion.

The outlook continues to assume that gross margins will decline by 200 basis points.

"Our implied gross margin outlook for (the fourth quarter) reflects an increase in realized inflation, as well as the impact of tariffs, which are beginning to flow into our (profit and loss)," Chief Financial Officer Chris Bealer said at an earnings call, according to a FactSet transcript. These drivers are expected to continue for some time, and while the company is stepping up mitigation efforts, "these offsets will take time to be fully realized."

President Donald Trump has sent letters to several US trading partners outlining new tariff rates that are scheduled to come into effect on Aug. 1.

Net sales for the quarter ended May 31 jumped 14% year on year to $381 million, below Wall Street's estimate of $381.7 million. Adjusted earnings per share rose to $0.51 from $0.50 a year earlier, exceeding the $0.50 consensus among five analysts.

"Consumption increased double-digits again for both Quest and OWYN which, in aggregate, represent about 70% of net sales today, while Atkins remained under pressure, as expected," Chief Executive Geoff Tanner said in a statement.

Simply Good Foods ( SMPL ) markets protein bars, ready-to-drink beverages, snacks, and confectionery products under the Quest, Atkins, and OWYN brands.

"While our margins remain strong overall, they were under pressure during the quarter as we realized higher levels of inflation, most notably from cocoa and whey," Tanner told analysts.

Price: 32.19, Change: -0.15, Percent Change: -0.46