AUSTIN, MINN. — Hormel Foods Corp. maintains a sense of resilience in the 2025 fiscal year as the company sets its sights on a rebound in the second half. While second quarter results included losses in sales volume for Hormel’s retail and foodservice businesses, the company believes its strategy to drive value through quality, product differentiation, innovation and convenience will position it as a reliable brand for future success.

For the second quarter ended April 27, 2025, Hormel reported net earnings of $179.7 million, equal to 33¢ on the common stock, down from $189.2 million and 35¢ per share on the common stock in the same period the previous year. Net sales remained consistent with last year’s totals at approximately $2.9 billion.

“We achieved solid organic top-line growth and delivered second quarter results in line with our expectations,” said Jim Snee, president and chief executive officer of Hormel Foods. “We anticipate strong second half growth led by our range of consumer-focused, protein-centric products. Notably, we expect meaningful contributions from our turkey portfolio, continued momentum in the Planters brand, growth from our leading positions in the marketplace and ongoing benefits from our Transform and Modernize (T&M) initiative.”

Retail sales volume dropped 6.6% to 677 million lbs, compared to last year’s 725 million lbs. Net retail sales dipped less than 1% year-over-over to $1.8 billion. Meanwhile, foodservice sales volume also experienced a year-over-year drop of 7.3% to 243 million lbs, compared to 262 million lbs in 2024. However, foodservice net sales rose slightly by 0.5% to $936 million from $932 million the prior year.

Hormel’s international business is where the company saw its only increase in net sales volume, which jumped 9% to 80 million lbs, compared to 73 million lbs last year. International net sales reached $179 million, a 7% increase from the previous year’s $167 million.

“Our international business delivered strong top line growth in the quarter, driven by an impressive double-digit volume and net sales growth in export and robust growth in China,” Snee said. “Our in-country China business continued to perform well, led by customer and distribution expansions and continues to lead the company in innovative product offerings.”

Banking on innovation

Providing a closer look at the company’s retail performance, Snee highlighted three areas in Hormel’s portfolio that will likely drive results in the second half.

The Applegate brand, for one, is well positioned to meet consumers’ demand for convenient protein solutions and new product innovations.

“The brand experienced incredible sales growth, outpacing the total edible category while also growing households,” Snee noted. 

With a strong pipeline of innovation under the brand’s umbrella — including the launch of a convenience breakfast platform as well as a line of lightly breaded chicken products — Snee feels confident in Applegate’s growth potential.

Additionally, Snee called out Jennie-O Turkey Store’s lean ground turkey as another high-performing offering.

“As demand for lean, high-protein food grows, Jennie-O is a go-to choice for consumers, demonstrated by consistent consumption gains and strong category leadership,” he said.

The third retail area Snee sees as a key driver for success is the company’s Mexican foods portfolio. Hormel’s refrigerated guacamole portfolio experienced double-digit consumption growth, with its salsa offerings delivering strong results as well. To further its authentic, convenient meal solutions, Hormel recently introduced al pastor shredded pork under its Herdez brand.

Snee also highlighted innovation within Hormel’s foodservice business. During the International Pizza Expo in March, Hormel showcased its new Fontanini hot honey sliced sausage.

“Recognizing that hot honey has become the fastest growing pizza ingredient, our team saw the perfect opportunity to capture that craveable, sweet heat in the form of our premium quality sausage — ultimately, creating Fontanini hot honey sliced sausage,” Snee said.

In addition to its new sausage offering, Hormel introduced Flash 180 chicken, which is designed to streamline back-of-the-house operations for one of the most in-demand menu items — the chicken sandwich.

“This year is a story of momentum,” Snee said. “As we’ve discussed, we expect half-one and half-two results will look very different. What will not be different, however, is our strategy. As we have intentionally structured our business to balance changes in the marketplace, our confidence in our brands and our team, our responsibility to our consumers, customers and operators, and our commitment to long-term results for our shareholders remain.”

Despite confidence in future performance, Hormel announced an adjustment to its 2025 fiscal outlook.

Hormel is narrowing its earnings per share on the common stock between $1.49 and $1.59, down from a previous estimate of $1.49 to $1.63. The company also declared an organic net sales growth estimate between 2% and 3%.