Yummy Earnings with a Bad Revenue Aftertaste

Author

Adam Garcia
June 10, 2025

An American manufacturer of food and beverage products performed well on earnings but missed revenue and guidance expectations, leading the multinational lower this morning. That’s not the only food company reporting tough earnings today—alongside an upscale clothing and accessory company. With tariff concerns hitting many companies’ forecasts, let's take a look at what's moving.

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What to Watch

Earnings:

  • Core & Main, Inc. [CNM]: Premarket

  • Academy Sports and Outdoors, Inc. [ASO]: Premarket

  • GameStop Corporation [GME]: Aftermarket

  • GitLab Inc. [GTLB]: Aftermarket

  • Dave & Buster's Entertainment, Inc. [PLAY]: Aftermarket

  • Stitch Fix, Inc. [SFIX]: Aftermarket

Economic Reports:

  • NFIB Optimism Index [May]: 6:00 am

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Food Industry

JM Smucker Q4 Earnings Beat Expectations But Revenue Falls Short

JM Smucker (NYSE: SJM) reported fourth-quarter earnings of $2.31 per share, surpassing analysts’ expectations by $0.07. However, revenue for the quarter came in at $2.1 billion, falling short of the consensus estimate of $2.18 billion.

The food company, known for its popular brands such as Jif and Folgers, saw its stock price rise 0.87% following the earnings release, closing at $111.85. Despite the earnings beat, shares have remained relatively flat over the past three months, with a 0.99% decline over the last 12 months.

Despite a positive earnings result, the company’s revenue miss raises concerns about its growth trajectory. For FY 2026, JM Smucker issued guidance for EPS between $8.50 and $9.50, below the consensus estimate of $10.05, signaling potential challenges ahead.

While the company exceeded expectations on EPS, it faces ongoing headwinds in its core business, which led to mixed analyst revisions over the past 90 days, with three positive and four negative earnings revisions.

JM Smucker concluded the quarter with a stable but cautious outlook. Investors will likely be focused on the company's ability to deliver on its full-year guidance and adjust to potential market challenges.

Shares of SJM are down over 8.00% ahead of the open. Despite the short-term earnings beat, the company faces ongoing revenue pressures and a cautious outlook, making it a stock to watch for potential risks as well as opportunities for operational improvements.

Designer Clothing

Designer Brands Reports Soft Start to 2025, Withdraws Full-Year Guidance

Designer Brands Inc. (NYSE: DBI) reported its financial results for the first quarter of fiscal 2025, ending May 3, 2025, showing a decline in net sales and a reported net loss.

The company reported net sales of $686.9 million, a 8.0% decrease from the same period last year. Total comparable sales fell by 7.8%, signaling challenges in the current retail environment. Gross profit also decreased to $295.1 million, with a gross margin of 43.0%, down from 44.2% the previous year. Designer Brands reported a net loss of $17.4 million, or $0.36 per diluted share. Adjusted net loss was $12.5 million, or $0.26 per adjusted diluted share.

Despite the financial setbacks, Designer Brands is focusing on cost-saving initiatives, aiming to deliver between $20 million to $30 million in savings by the end of 2025. CEO Doug Howe highlighted the company's efforts to preserve margins, control costs, and mitigate the impact of tariffs amid ongoing macroeconomic volatility.

Designer Brands' team is also focusing on amplifying value in its retail channels. The company’s liquidity remains stable, with cash and cash equivalents totaling $46.0 million, up from $43.4 million last year. The company ended the first quarter with inventories of $623.6 million, slightly up from $620.5 million in Q1 2024.

The company operates 669 stores, with a slight reduction in square footage compared to the previous year. In terms of shareholder returns, Designer Brands declared a dividend of $0.05 per share for both Class A and Class B common shares, payable on June 18, 2025.

Due to ongoing macroeconomic uncertainty, particularly related to global trade policies, Designer Brands has withdrawn its full-year 2025 guidance. The company’s primary focus moving forward will be executing disciplined initiatives to strengthen its brand and customer relations.

Shares of DBI are down 16.9% following the earnings release.

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Grocery Wholesaling

United Natural Foods Reports Solid Sales Growth Despite Q3 Fiscal 2025 Loss

United Natural Foods, Inc. (NYSE: UNFI) released its financial results for the third quarter of fiscal 2025, which ended May 3, 2025, showing a notable increase in net sales despite incurring a net loss.

The company reported net sales of $8.1 billion, reflecting 7.5% year-over-year growth compared to $7.5 billion in the same quarter last year. However, UNFI recorded a net loss of $7 million, or $0.12 per diluted share. Adjusted EBITDA surged by 20.8%, reaching $157 million, while adjusted EPS increased to $0.44, up from $0.10 in the previous year.

The performance was largely driven by a 4% increase in wholesale unit volumes, with strong growth in the natural product segment, which saw a 12% increase in sales. UNFI also implemented lean management practices in 20 of its 52 distribution centers, enhancing operational efficiency, safety, and delivery capabilities.

UNFI saw significant improvements in its financial metrics, including a $70-million increase in free cash flow compared to the previous year and a decrease in its net debt-to-adjusted EBITDA ratio to 3.3x, the lowest in two years. The company also made a voluntary prepayment of $100 million on its Term Loan Facility.

Despite these positive results, the company is still recovering from a recent cyber incident. CEO Sandy Douglas mentioned that the company worked swiftly to restore its capabilities and provide short-term solutions to support customers during the disruption.

UNFI has updated its full-year forecast, maintaining its net sales guidance of $31.3 billion to $31.7 billion and its adjusted EPS forecast of $0.70 to $0.90. However, the company did not revise its outlook for other financial metrics due to ongoing evaluations of the cyber incident's impact.

Shares of UNFI are up about 4.8% in premarket following the earnings release.

Movers and Shakers

Plug Power, Inc. [PLUG] – Last Close: $1.38

Plug Power is a leader in the hydrogen fuel cell market, offering solutions for clean energy and transportation. The company’s strong growth in the hydrogen sector is supported by strategic partnerships and the increasing demand for green energy solutions.

Shares have gained 12.7% in premarket, reflecting confidence in Plug Power's role in the clean energy transition, particularly with its expansion in fuel cell technology and upcoming partnerships.

My Take: Plug Power has positioned itself well in the growing clean energy space. While it’s still navigating some volatility and competition in the hydrogen sector, its continued investment in technology could help it strengthen its position in the long run. Given its recent gains, PLUG could potentially become a significant player in the energy transition.

MP Materials Corp. [MP] – Last Close: $28.67

MP Materials is a leading rare earth materials producer. The company is benefiting from the growing demand for rare earths as the world shifts toward new technologies.

Shares are up 3.54% in premarket, as MP Materials continues to expand its production and maintain a solid balance sheet, with strong earnings growth in recent quarters.

My Take: MP Materials appears to have a strong position in the critical materials market for EVs and green tech, with substantial growth potential as demand for these materials increases. While it’s been performing well recently, the broader commodities market and geopolitical factors could affect its stability.

Village Farms International, Inc. [VFF] – Last Close: $1.25

Village Farms operates in the agricultural and cannabis sectors, focusing on high-quality produce and cannabis cultivation.

The stock saw a pre-market increase of 5.04%, indicating market confidence in the company’s strategy, which includes expanding cannabis operations while maintaining its core agriculture business.

My Take: Village Farms has shown solid growth and financials, especially with its cannabis segment poised for expansion, and VFF could continue to grow if the cannabis market keeps expanding. Regulatory risks and market competition could impact future performance.

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Everything Else

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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