The natural and organic food industry including Hain Celestial (HAIN) is facing the brunt of the economic slowdown and escalating costs. The ongoing turmoil and the battered financial market are exerting pressure on consumer disposable incomes triggering a shift in focus from higher priced organic products to cheaper private label brands.
Consequently, retailers and distributors are being compelled to reduce inventories, thus, exerting pressure on the company’s sales growth. Furthermore, a strong U.S. dollar continues to moderate results, adversely impacting the top-line.
In the most recent quarter, earnings were well below the Zacks Consensus Estimate, and were down 17.6% year over year.Zacks Investment Research
