May 30 Reuters Hormel Foods missed market expectations for secondquarter sales on Thursday as the Wholly dips maker grapples with weakness in its mainstay retail business, offsetting steady demand for its higherpriced meat products.

Shares of the Planters brand owner were down about 7 as the company reported total volume decline of 3.6.

Sales at Hormel39;s retail business, its biggest segment that accounts for about 62 of total net sales, fell 7, with volumes down 5 in the quarter ended April 28.

The company said the sales decrease was due to volume and pricing decline for whole turkeys and weak demand for readytoeat meals.

Sales at the company39;s food service business, however, grew 6 in the quarter, helped by higher volume sales of its bacon, premium prepared protein and turkey categories.

While the company maintained its annual sales target, it now expects annual adjusted earnings per share in the range of 1.55 to 1.65, compared with its prior forecast of 1.51 to 1.65.

The company said it was benefiting from lower logistics and supply chain costs.

Hormel Foods posted an adjusted profit of 38 cents per share for the quarter, compared with analysts39; average estimate of 36 cents per share, according to LSEG data.

Overall, quarterly net sales fell 3 to 2.89 billion, missing analysts39; average expectations of 2.97 billion.

Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shreya Biswas

Source Reuters