National Beverage sales hold flat as aluminum costs squeeze first-quarter earnings

National Beverage Corp. (NASDAQ: FIZZ), the parent of LaCroix sparkling water, reported essentially flat sales and lower earnings for its FY2027 first quarter as aluminum costs and tariffs squeezed margins. Diluted earnings per share fell to $0.50 from $0.60, showing how higher costs cut into profit even as revenue held steady.

First-quarter results

For the three fiscal months ended August 1, 2026, net sales were $330.662 million, compared with $330.515 million in the quarter ended August 2, 2025. Net income fell to $47.004 million from $55.760 million. The company reported a 35% gross margin and said aluminum costs alone reduced gross margin by almost 600 basis points.

The quarter also included a substantial cash return to shareholders: National Beverage said it had $107 million in cash after paying a $304 million special dividend, or $3.25 per share, on July 30. Its September 10 earnings release was furnished with a Form 8-K filed September 11.

Revenue barely changed from a year earlier, but the company said that stability masked opposing trends: higher average selling prices were largely offset by volume declines. A company spokesperson attributed pressure on first-quarter net sales to consumer sentiment and tariffs. The release did not quantify the volume decline.

Cost and tariff pressure

National Beverage said higher packaging and ingredient costs pressured gross profit, driven significantly by elevated aluminum commodity costs and tariffs. The aluminum impact of almost 600 basis points amounts to nearly six percentage points of gross margin. Fuel and freight costs also pressured inbound and outbound shipping expenses.

The company said it chose to absorb a portion of tariff-related cost increases in response to a request from the current administration. It did not disclose a dollar amount for the costs it absorbed.

Dividend and cash

The July 30 payment was National Beverage's thirteenth special cash dividend, according to the company. It said cumulative special dividends totaled $19.78 per share, or more than $1.8 billion returned to shareholders. The reported $107 million cash balance followed the $304 million payment.

What management highlighted

A company spokesperson said National Beverage was encouraged by a rebound in orders during August and was optimistic that improving volume and product mix would allow growth to resume. The company also said recently instituted pricing actions and its operating focus should improve performance. Those comments describe management's expectations beyond the reported quarter; they do not establish that sales growth has resumed.

National Beverage also highlighted its newest LaCroix flavor, PineApple CocoNut, which featured in a summer advertising campaign. Alongside LaCroix sparkling water, the company's portfolio includes carbonated soft drinks and single-serve juice and drink products.

Filing path

National Beverage disclosed fiscal 2027 first-quarter results in Form 8-K AccNo 0001437749-26-030186 under Items 2.02 and 9.01 with Exhibit 99.1, filed September 11, 2026 (event September 10, 2026) for the quarter ended August 1, 2026.