National Beverage Absorbs Tariffs as Sales Stall
First-quarter net sales were $331 million as price gains were offset by volume declines, and earnings fell to $.50 a share.
National Beverage Corp. (FIZZ) reported first-quarter net sales of $331 million for the three months ended August 1, 2026, essentially unchanged from $330.5 million a year earlier, as average selling price increases were largely offset by volume declines.
The Fort Lauderdale beverage company said consumer sentiment and tariffs weighed on the quarter. A spokesperson said market conditions remained soft, but orders rebounded during August and improving volume and mix would resume growth going forward.
Gross margin fell to 35%, reflecting elevated input costs. Aluminum costs alone negatively impacted gross margin by almost 600 basis points, with fuel and freight also pressuring inbound and outbound shipping. National Beverage elected to absorb a portion of tariff-related cost increases at the request of the current administration. Recently instituted pricing actions, together with a disciplined operating focus, will improve performance.
Earnings per share were $.50, down from $.60 a year earlier. Net income was $47.0 million versus $55.8 million.
The sequential step-up from the winter quarter was larger. Net sales of $331 million compared with $265 million in the third quarter ended January 31, 2026, and earnings of $.50 a share compared with $.44. In that earlier period, January shipments were up 7% despite winter storm Fern, and initial fourth-quarter shipments reflected continued volume improvements. The first-quarter commentary instead framed the year’s start as a volume drag that offset price.
Cash was $107 million after the company paid a $304 million special dividend of $3.25 a share on July 30, 2026. That payment was the thirteenth special cash dividend, bringing the running total to $19.78 a share, or over $1.8 billion.
Innovation remained a stated priority. Shareholders were told they would soon receive a taste of the newest LaCroix flavor, PineApple CocoNut, which was featured in the summer ad campaign and quickly became a consumer favorite. The company said its healthier LaCroix sparkling water, along with a “priced-right” flavor variety of carbonated soft drinks and single-serve juice and drink products, positions it across channels and beverage categories.
The company will continue to closely monitor volatile market conditions, including aluminum, fuel and freight, and tariff-related costs it is choosing to absorb rather than fully pass through. Pricing actions already in place, together with a disciplined operating focus, are expected to improve performance as volume and mix recover.
The quarter’s arithmetic was a near-flat top line against a year-earlier $330.5 million, a 35% gross margin after aluminum, fuel and freight, and earnings of $.50 a share. Cash after the $304 million special dividend stood at $107 million.