General Mills Shares Drop as Revenue Miss and Lower Guidance Weigh on Outlook

General Mills (NYSE:GIS) saw its stock fall over 2% intra-day today despite reporting better-than-expected earnings, as revenue came in below estimates and the company cut its full-year outlook, citing weaker demand and inventory challenges.

For the third quarter, the company posted adjusted earnings per share of $1.00, slightly exceeding analyst expectations of $0.98. However, revenue of $4.8 billion fell short of the $4.99 billion consensus, reflecting inventory reductions at retailers and a slowdown in snacking categories.

Organic net sales declined 5% year-over-year, with approximately 4 percentage points of that drop tied to retailer inventory pullbacks and a reversal of favorable timing factors from Q2.

The North America Retail division, which remains General Mills’ largest business segment, saw sales decline 7% to $3.0 billion, highlighting softer consumer demand.

Looking ahead, General Mills lowered its fiscal 2025 guidance, now expecting organic net sales to decline between 2% and 1.5%, down from its previous forecast of flat to 1% growth. The company also revised its adjusted operating profit and EPS outlook, now projecting a 7% to 8% decline in constant currency, compared to the previous range of a 2% to 4% drop.