Big U.S. Firms Raising Prices To Protect Profit Margins: CNN Business
Consumers are feeling the pinch from inflation, and that will likely continue for the foreseeable future. That's because major companies have been raising prices to protect their profit margins — and they are showing no signs of changing course anytime soon, Paul R. La Monica reported for CNN Business.
Photo Insert: Major companies have been raising prices to protect their profit margins, and so far, executives at Marshalls, T.J. Maxx, and HomeGoods have said, "the pricing strategy is working."
TJX CEO Ernie Herrman told investors during a February earnings call that there have been "price increases across the board." So far, executives at Marshalls, T.J. Maxx, and HomeGoods have said, "the pricing strategy is working."
Concert promoter and ticket-seller Live Nation said that fans of live events should expect ticket costs to climb even further, with Live Nation CEO Michael Rapino arguing "this is a business that is underpriced."
Norwegian Cruise Line CEO Frank Del Rio said expenses are up, and his company is passing the costs onto customers. "We didn't drop prices. And that's by design because that's just not what we do," Del Rio said.
Peanut butter and jelly giant Smucker, which also owns Folgers and sells Dunkin' branded coffee in stores, defended its price hikes for coffee. "We have seen higher costs," said CEO Mark Smucker in response to questions about strong profits for the coffee division.
SPAM owner Hormel Foods is also trying to navigate the higher inflationary environment. That means higher prices for its products.
“As we're sitting here today, you've got, obviously, breast meat prices at significantly higher prices. You've got corn and soy at very high prices. So there's just a lot of moving parts and a lot of volatility," said CEO James Snee during Hormel's earnings call with analysts Tuesday.
Energy drink maker Monster Beverage has also lifted prices. Monster chairman and co-CEO Rodney Sacks read a long list on the company's earnings call of all the things that are costing the company more — costs that it is passing on to consumers.
"The company experienced increased aluminum can costs attributable to higher aluminum commodity pricing as well as the cost of importing aluminum cans," Sacks said.