Smithfield Foods cut its annual total sales and adjusted operating profit forecasts on Tuesday, citing ongoing challenges including cautious consumer spending and higher input costs, reported Reuters.
Shares of the company were down 3% in premarket trading.
Inflation slowed more than expected in June, driven by lower energy prices, but consumer budgets remain stretched and shoppers are buying smaller packs or trading down.
Sales of its Hog Production unit fell 8.2% to $772 million from last year.
President Donald Trump has been considering potential executive actions to reduce tariffs on beef imports and regulations on producers as part of an attempt to lower domestic beef prices.
Peer Tyson Foods last week also lowered its annual profit forecast, warning that losses in its beef business would widen as tight US cattle supplies keep livestock costs elevated.
Smithfield Foods now expects fiscal 2026 sales to be roughly flat, compared with its prior expectations of low-single-digit percentage growth.
The company also expects adjusted operating profit between $1.23 billion and $1.38 billion, compared with its prior forecast of $1.33 billion to $1.48 billion. However, it beat second-quarter sales and profit estimates.
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