Simply Good Foods Co. (SMPL) reported Thursday a loss in its second quarter, compared to prior year's profit, hurt mainly by a loss on impairment charge and weak revenues.
Further, the nutritional snacking company issued cautious third quarter outlook and trimmed fiscal 2026 forecast.
On the Nasdaq, shares of Simply Good Foods are currently trading 14.64 percent lower, at $12.33.
For the second quarter, net loss was $159.70 million or $1.73 per share, compared to a profit of $36.75 million or $0.36 per share last year.
Loss on impairment for the second quarter was $249.00 million related to the Atkins brand and OWYN brand intangible assets.
Adjusted earnings per share were $0.45, compared to $0.46 in the comparable year ago period.
Loss from operations was $213.32 million, compared to an income of $54.72 million in the previous year.
Adjusted EBITDA decreased 18.4 percent percent to $55.51 million from $68.00 million a year earlier.
Quarterly net sales declined 9.4 percent to $326.01 million from $359.66 million a year earlier, which was largely driven by poor retail takeaway.
Total Simply Good Foods retail takeaway decreased about 6.4 percent, driven by a growth for Quest of 2.4 percent and a decline for OWYN of 2.4 percent, while Atkins declined 23.4 percent, which was largely as expected for the brand.
Looking ahead for the third quarter, Simply Good Foods expects net sales to range between $329 million to $338 million, a drop of 11 percent to 14 percent from last year. Additionally, Adjusted EBITDA is foreseen between $46 million to $50 million, down 32 percent to 38 percent year-over-year.
Further ahead, for fiscal 2026, the company now expects net sales to be in the range of $1.31 billion to $1.35 billion, down 7 percent to 10 percent year-over-year.
Also, adjusted EBITDA is now forecasted between $217 million and $225 million, down 19 percent to 22 percent from last year.
The company previously expected net sales to range from a 2 percent decline to a 2 percent increase, and adjusted EBITDA to fall up to 4% or rise up to 1% year-over-year.
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