{"id":271170,"date":"2021-06-10T17:46:00","date_gmt":"2021-06-10T14:46:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/campbell-soup-sees-inflation-as-significant-and-sustained-through-the-year\/"},"modified":"2021-06-10T17:46:00","modified_gmt":"2021-06-10T14:46:00","slug":"campbell-soup-sees-inflation-as-significant-and-sustained-through-the-year","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/campbell-soup-sees-inflation-as-significant-and-sustained-through-the-year\/","title":{"rendered":"#\n  Campbell Soup sees inflation as \u2018significant\u2019 and \u2018sustained\u2019 through the year"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a407456ea200\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a407456ea200\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/campbell-soup-sees-inflation-as-significant-and-sustained-through-the-year\/#Supply_chain_cost_increases_are_%E2%80%98shorter_term_in_nature_stock_drops_after_profit_sales_miss\" >Supply chain cost increases are \u2018shorter term\u2019 in nature; stock drops after profit, sales miss<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/campbell-soup-sees-inflation-as-significant-and-sustained-through-the-year\/#Tomi_Kilgore\" >Tomi Kilgore<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Campbell Soup sees inflation as \u2018significant\u2019 and \u2018sustained\u2019 through the year<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Supply_chain_cost_increases_are_%E2%80%98shorter_term_in_nature_stock_drops_after_profit_sales_miss\"><\/span>\n  Supply chain cost increases are \u2018shorter term\u2019 in nature; stock drops after profit, sales miss<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\">\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000300748\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Inflation took a big bite out of Campbell Soup Co.\u2019s fiscal third-quarter profits, and is expected to keep eating away at earnings for a \u201csustained\u201d period.<\/p>\n<p> While the soups, snacks and simple meals seller\u2019s Chief Executive Mark Clouse said Wednesday that he was \u201cconfident\u201d that inflation can be addressed, through pricing actions and continued sales momentum, he said there is enough uncertainty to hold off before providing a more detailed outlook.<\/p>\n<div class=\"paywall\">\n       \u201cI would be remiss not to say, though, that inflation is a little bit of a moving target right now,\u201d Clouse said, according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/s27.q4cdn.com\/108522393\/files\/doc_financials\/2021\/q3\/CampbellSoupCompany_Q32021EarningsCall_CorrectedTranscript_2021-06-09.pdf\" class=\"icon none\">a transcript of the post-earnings conference call with analysts<\/a>. \u201cAnd so, although I feel great about what we\u2019re doing, I think I kind of want to wait for the next quarter to see kind of where we\u2019re landing on a couple of the variables and a couple of the commodities.\u201d<\/p>\n<p>Clouse\u2019s comments came after the company reported early Wednesday fiscal third-quarter results, in which profit and sales fell more than Wall Street expectations and the full-year outlook was  cut, as inflation and rising supply chain costs weighed on results.<\/p>\n<p>The stock<br \/>\n        CPB,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202107764\/composite\" class=\"positive\">+0.65%<\/bg-quote><br \/>\n       dropped 6.1% in afternoon trading Wednesday, enough to make it the second-biggest decliner in the S&amp;P 500. It recovered a bit on Thursday morning.<\/p>\n<p>\u201cWe did face a significant inflationary environment in the quarter, as well as shorter-term increases in supply-chain costs,\u201d Clouse said. \u201cWe anticipated the vast majority of these drivers, but in certain areas the pressures intensified, especially around inflation and some of the transitional costs moving out of the COVID-19 environment.<\/p>\n<p>He said some of the supply chain headwinds were shorter term as they were caused by the Texas winter storms and the closure of the company\u2019s Paris, Texas facility for two weeks. Regarding inflation, however, Chief Financial Officer Mick Beekhuizen said his expectation is for \u201csustained inflationary pressures through the remainder of the year.\u201d<\/p>\n<p>\u201cIn the fourth quarter, we expect more pronounced inflationary pressures to negatively impact margins, while pricing actions take hold in the beginning of fiscal 2022,\u201d Beekhuizen said.<\/p>\n<p>In the third quarter, gross margin decreased to 31.7% from 34.5%, with CEO Clouse saying inflation and supply chain cost increases caused about a third of the gross margin erosion. Based on the current FactSet consensus for sales and cost of sales, the current expectation for fiscal fourth-quarter gross margin is 35.3%.<\/p>\n<p>Campbell Soup\u2019s stock has shed 4.6% year to date, while the SPDR Consumer Staples Select Sector exchange-traded fund<br \/>\n        XLP,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200697959\/composite\" class=\"positive\">+0.57%<\/bg-quote><br \/>\n       has gained 4.7% and the S&amp;P 500 index<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"positive\">+0.23%<\/bg-quote><br \/>\n       has advanced 12.5%.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Tomi Kilgore\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Tomi_Kilgore\"><\/span>Tomi Kilgore<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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