Toots reported second-quarter 2026 net sales of $151.9 million and net earnings of $13.3 million (EPS $0.18), down from $153.2 million and $17.5 million (EPS $0.23) in Q2 2025. For the six months ended June 30, 2026, net sales were $301.4 million and net earnings were $31.0 million (EPS $0.41), versus $299.7 million and $35.6 million (EPS $0.47) in the prior year period. Management cited timing of seasonal sales, higher trade promotions and elevated cocoa, energy and packaging costs as primary drivers of the year-over-year earnings decline.
Financial Highlights
- Revenue (Second Quarter 2026): $151,943,000; Second Quarter 2025: $153,190,000.
- Net Income (Second Quarter 2026): $13,347,000; Second Quarter 2025: $17,544,000.
- EPS (Diluted) (Second Quarter): $0.18 in 2026 vs. $0.23 in 2025.
- Revenue (Six Months 2026): $301,431,000; Six Months 2025: $299,711,000.
- Net Income (Six Months 2026): $31,008,000; Six Months 2025: $35,602,000. EPS (Six Months): $0.41 in 2026 vs. $0.47 in 2025.
Business Highlights
- Management increased brand support via higher trade promotions and advertising to drive long-term brand momentum and sell-through.
- Timing shifts in seasonal sales between Q2 and Q3 2026 affected reported quarterly comparisons versus prior years.
- Elevated cocoa and chocolate unit costs in the first half of 2026 compressed gross profit margins; commodity prices have moderated from 2025 peaks and are expected to flow through later in 2026 and into 2027.
- Higher energy costs raised freight, delivery and resin-based packaging expenses during the periods reported.
- Ongoing investments in plant manufacturing operations aimed at meeting new customer and consumer demands, improving product quality, expanding capacity on certain lines and increasing operational efficiencies.
Original SEC Filing:
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