Campbell beats Street 2Q forecasts but soup sales decline
CAMDEN, N.J. (AP) — Campbell Soup Co. beat Wall Street second-quarter expectations, but declining soup and juice sales and an ongoing dispute with Walmart left investors cold and shares fell in morning trading.
U.S. soup sales were down 7 percent amid a disagreement with Walmart over a promotional program, an issue Campbell hinted at six months ago. Campbell said it is making progress with Walmart on the issue and expected the decline in soup sales to moderate in the second half of the fiscal year.
Another disappointment was the Campbell Fresh segment, which did not recover as the company expected. Poor sales of its Bolthouse Farms refrigerated beverages drove a 1 percent decline in the segment, which also includes salad dressings, hummus and salsa.