JM Smucker Issues Downbeat Annual Forecast Under Tariffs Pressure: Retail Buzz Spikes

J.M. Smucker Co (SJM) shares fell nearly 16% on Tuesday, their steepest single-day drop in nearly four decades, after the packaged food company issued an annual forecast that missed Wall Street expectations.

The company, known for Smucker's (jam), Jif (peanut butter), Folgers, and Cafe Bustelo (coffee), said it is seeing higher costs from U.S. tariffs, particularly in its coffee business, and headwinds in its snacks unit.

J.M. Smucker forecasted sales to increase between 2% and 4% in the fiscal year ending April 2026, compared to a 7% growth in fiscal year 2025.

Its adjusted earnings forecast, in the range of $8.50 to $9.50 per share, was below analysts' expectations of $10.25.

The company said the impact of higher coffee costs and US levies reduced that forecast by roughly $1 a share.

For the coffee business, J.M. Smucker plans to raise prices again in August, following a price increase in May.

The company is looking to revive Hostess Brands, a bakery and snacks business it acquired in 2023, by simplifying the portfolio, reducing costs, and offering more competitive pricing.

On Stocktwits, the retail sentiment climbed to 'extremely bullish' from 'bullish,' the previous day, and message volume rose over 2,000%.

As of the time of writing, J.M. Smucker was among the top 15 trending stocks on the platform.

Users said the stock is "definitely oversold" and is an easy "10%er from here," indicating a potential upside.

In Q4, Smucker's sales declined to $2.14 billion from $2.21 billion a year ago, and adjusted profit fell 13% to $2.31 per share. Analysts expected $2.18 billion in revenue and $2.24 per share earnings.

J.M. Smucker shares are down 14.3% year-to-date.

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