Lamb Weston Holdings (NYSE:LW), the frozen potato giant, reported a sharp drop in earnings for its fiscal second quarter of 2025, citing rising manufacturing costs and decreased sales volume.
The company’s net sales fell 8% to $1.6 billion compared to the same period last year.
The decline in profitability was even more dramatic, with income from operations plummeting 94% to just $19 million.
During the period under review, the company swung to a net loss of $36 million, down from a net income of $251 million in the prior year.
On a per-share basis, the loss amounted to $0.25, a decline of $1.73 from the previous year's earnings per share.
Meanwhile, the company also absorbed a significant pre-tax charge of $159 million related to an ongoing restructuring plan designed to streamline operations and improve efficiency.
This restructuring effort comes as the company navigates a complex economic landscape.
Despite the bleak earnings report, Lamb Weston’s board of directors approved a $250 million increase to its share repurchase authorization.