J.M. Smucker Expects A 5% Sales Decline In Q2

The J.M. Smucker Company (NYSE: SJM) announced on Wednesday preliminary results for its second quarter.

J.M. Smucker expects to earn approximately $1.53 per share in the second quarter, which falls short of the $1.66 analysts are expecting. The company adds that it expects sales to be 5 percent lower in the quarter compared to a year ago.

Shares were down 6 percent at $98.50 in the premarket.

J.M. Smucker stated that consumers responded negatively to higher price points for its roast and ground coffee products in the quarter. Specifically, Folgers branded coffee saw a 20 percent decrease in volume sold. In addition, a lower promotional effectiveness and competitive activity contributed to the sales decline.

J.M. Smucker expects its U.S. Retail Coffee segment to report a decrease of 16 percent in its profit during the second quarter, compared to 2014.

The company also lowered its full year 2014 guidance and now expects to earn $5.45 to $5.65 per share, falling short of prior guidance of $5.95 to $6.05 and also short of the $6.01 analysts were expecting.