J.M. Smucker Sees Pandemic-Related Surge in Demand Fading
After seeing a "material benefit" to its sales as demand rose due to the COVID-19 pandemic, J.M. Smucker (NYSE: SJM) says it believes sales will comparatively decline over the next year. In reporting its fiscal fourth-quarter 2020 results Thursday, the company said it benefited from $185 million on incremental sales during the period that ended April 30 as consumers stocked up to stay at home.
Smucker said it expects the decrease in comparable sales for its fiscal 2021 because of an estimated $120 million coronavirus-related reduction mostly due to what it expects will be "a significant and extended decline in the Company's Away From Home business." The company reported a 21% decline in revenue from this segment in the quarter, reflecting pandemic-necessitated restrictions on restaurants and other food-service providers.
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Source Fool.com
