Campbell’s company on Wednesday cut its annual sales and profit forecasts and suspended share buybacks, as the packaged food maker focuses on reducing debt while it faces weak demand from macroeconomic uncertainty.

Shares of the company tumbled nearly 8% in morning trading, touching their lowest level since 2003.

As of February 1, the company had about $172 million remaining under its anti-dilutive share buyback program, plus another $301 million under its strategic repurchase plan.

Campbell’s is struggling with weak demand as lower-income consumers cut spending amid rising living costs. The company’s price hikes in recent years, aimed at protecting margins from rising input costs, have also weighed on sales.

“Debt reduction remains a key focus going forward, with particular emphasis on reducing working capital and capex requirements,” said CFO Todd Kanfer.

As of February 1, the company had $7.08 billion in debt.

Campbells also warned that revised US tariffs could intensify cost pressures.

“The newly imposed 10% global tariff under Section 122 will result in a modest increase in the company’s second-half tariff headwind,” Kanfer added.

The company now expects fiscal 2026 organic net sales to fall between 1% and 2%, up 1% from its previous forecast, while adjusted earnings per share are projected between $2.15 and $2.25, below its previous range of $2.40 to $2.55.

Consumer companies hit hardest by President Donald Trump’s tariffs are navigating the latest uncertainty after the US Supreme Court struck down earlier levies.

Analysts, including RBC Capital Markets’ Nick Mody, remain cautious, citing underperformance in the snacks segment, particularly as PepsiCo’s Frito-Lay unit has cut prices and relaunched key rival brands.

“Tariffs are eating into company margins,” CFRA analyst Arun Sundaram said, adding that duties on steel and aluminum imports are proving particularly costly.

Campbell doesn’t seem to have pricing power once he’s given the mandate, he added.

The company aims to focus more on value packs and marketing promotions to boost snack-segment sales, though analysts note that such investments could put further pressure on margins.

Campbells said it is 85% hedged on commodities, including freight diesel, and its guidance excludes any potential impact from the Iran conflict or rising oil prices.

In the second quarter ended Feb. 1, net sales fell 5% to $2.56 billion, compared with the average analyst expectation of $2.61 billion. Adjusted earnings per share came in at 51 cents, beating expectations for 57-cents, according to data compiled by LSEG.