J.M. Smucker Stock Drops as Tariffs Ding Coffee Results

Shares in The J.M. Smucker Co. (SJM) fell in midday trading Wednesday after the food-and-beverage firm swung to a first-quarter loss as the Trump administration’s tariffs hit its coffee division.

The Orrville, Ohio-based company said profit at its U.S. retail coffee division, which owns Folgers coffee as well as Dunkin’ and Café Bustelo brands, fell by 22% as “higher commodity costs, unfavorable volume/mix, and higher marketing spend,” offset the higher prices it charged for coffee.

A Smucker executive said on the earnings call Wednesday that additional price increases are planned “in the early winter associated with the increased tariff rates” the company is experiencing, according to an AlphaSense transcript. The 50% tariff imposed by President Donald Trump on some imports from Brazil—among the largest coffee producers in the world—took effect earlier this month.

The company’s first-quarter results lagged analysts’ estimates. It posted a first-quarter GAAP net loss of $0.41 per share versus a $1.74 earnings per share (EPS) number the same period last year. Analysts polled by Visible Alpha had projected $1.42. Its first-quarter revenue dropped 1% year-over-year at $2.11 billion, below estimates of $2.12 billion.

The company, whose products also include pet foods and Jif peanut butter, also raised its full-year sales growth guidance to between 3% and 5%, versus 2% to 4% previously. It reaffirmed its previous adjusted EPS guidance of $8.50 to $9.50 a share.  The outlook was in line with estimates of a 3.2% increase in sales and a $9.24 adjusted EPS for the full year.

“The Company continues to operate in a dynamic and evolving external environment, including tariffs and related trade impacts, regulatory and policy changes, ongoing input inflation, and changes in consumer behaviors that could impact its fiscal year 2026 outlook,” it said. 

Smucker shares fell 5% in intraday trading and have risen 3% so far this year entering Wednesday.