How could SPAM be performing so poorly?
I can’t imagine there are many of you… but I have some terrible news for SPAM lovers. Hormel reported worse-than-expected sales on Thursday and is proceeding with caution due to tariffs on US agricultural products. Specifically, pork exports have declined along with sales and profitability. These tariffs are almost definitely going to put a dent in earnings this year for Hormel.
Shares were down… just 3% after the announcement which isn’t too bad. And who knows if it is even the tariffs because SPAM is disgusting…just kidding. While I stand by my stance on SPAM, in reality, it probably is the tariffs…
They’re not alone… because Sanderson Farms, a producer of poultry, reported that the trade turmoil is hurting their earnings, as well. Grain costs have gone up; shares of Sanderson have gone down (by 4%). Tyson is another company that has complained about the tariffs. So it looks like pork producers pockets will be a little less fat this year..