McCormick backs guidance amid plans to mitigate tariff impact

Published 26/06/2025, 11:48
© Reuters.

Investing.com - McCormick & Company (NYSE:MKC) has reported better-than-anticipated profit in its fiscal second quarter and backed its full-year outlook thanks to plans to mitigate the impact of tariff-related headwinds.

Like many food retailers, McCormick, which specializes in spices and seasoning mixes, has been grappling with weak consumer confidence and shoppers looking to rein in spending due to uncertainty around the economic impact of sweeping U.S. tariffs.

Writing in a statement, CEO Brendan Foley called the operating environment "dynamic," but noted that it had notched market share gains across its core businesses due in part to investments in key growth areas.

In the quarter ended on May 31, the company posted net sales growth of 1% versus the prior year to $1.66 billion, in line with expectations.

Adjusted earnings per share came in at $0.69, matching the year-ago period and above Bloomberg consensus projections of $0.66.

"We remain confident in the sustained trajectory of our business and in our ability to achieve our 2025 outlook as well as our long-term objectives, and to drive shareholder value," McCormick wrote.

He added that the firm is "well positioned" because of its "robust plans" to combat a tariff-fueled rise in costs while also expanding margins.

Against this backdrop, McCormick reiterated its guidance for annual operating income growth of 3% to 5% and adjusted per-share income of $3.03 to $3.08, compared with analysts estimates of $3.02. Sales are seen remaining flat to rising by 2%.

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