MW Egg lovers can't get a break. Vital Farms to raise prices because of tariffs.

By Tomi Kilgore

Citing effects of tariffs, Vital Farms tells retail partners like Kroger, Target and Whole Foods that it will raise egg prices at least 10% this month

First it was the avian flu outbreak, and now it is tariffs that are causing egg prices to rise.

Vital Farms Inc. $(VITL)$, which bills itself as the top U.S. brand of pasture-raised eggs, said Thursday that while it was relatively insulated from the tariffs announced by the Trump administration, it won't be totally immune.

The tariffs will raise costs by increasing prices of various commodities, including steel, and could also affect the purchasing behavior of its customers, the company said.

"We've announced to our retailer partners a modest, low-double-digit percentage-price increase for our shell-egg products that will go into effect this month," Chief Executive Russell Diez-Canseco said, according to a FactSet transcript of the company's earnings call with analysts.

In its quarterly filing Thursday, the company listed Kroger Co. $(KR)$, Target Corp. $(TGT)$, Amazon.com Inc.'s $(AMZN)$ Whole Foods and Sprouts Farmers Market Inc. $(SFM.AU)$ as retail partners where it had a "strong presence."

Vital Farms said it also sells its products at Walmart Inc. $(WMT)$, Albertsons Cos. $(ACI)$ and Publix Super Markets Inc.

The price hike comes after months in which consumers had to contend with high egg prices caused by a lack of supply as an outbreak of avian flu, or "bird flu," ravaged the chicken population.

Read: High egg prices are getting the DOJ's attention. Will that help consumers?

Diez-Canseco acknowledged that some retailers have already raised prices on eggs, even before the company's latest increases take effect. But because the company has little influence over what the retailers charge, he couldn't say whether prices at the stores will be raised even further.

"I can only speculate that [retailers will] continue to price relative to their competitive needs and making sure that they're meeting their own brand commitment to their consumers," Diez-Canseco said.

Vital Farms' stock dropped 8.9% in morning trading. It has shed 13.2% in 2025, while shares of rival egg producer Cal-Maine Foods Inc. (CALM) have lost 10.9% and the S&P 500 index SPX has declined 3.4%.

Separately, Vital Farms reported first-quarter revenue that grew 9.6% from a year ago to $162.2 million, which was below the average analyst estimate compiled by FactSet of $163 million.

Meanwhile, net income for the quarter to March 30 declined 11.2% to $16.9 million, and earnings per share fell to 37 cents from 43 cents but beat the FactSet consensus of 26 cents.

For 2025, the company said it continues to expect revenue of at least $740 million, including the new price increases.

"While consumer demand for our products remains strong, we are mindful of potential headwinds from global trade tensions and broader economic uncertainties that could impact consumer spending patterns in coming quarters," the company said.

Chief Financial Officer Thilo Wrede also touched on the "material weakness" of the company's internal accounting controls that was disclosed in the 2024 annual report filed in February, saying it was a result of "automated reconciliation" between purchase orders and sales reporting.

"No revenue inconsistencies were found, and we do not anticipate any restatements," Wrede said.

-Tomi Kilgore

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May 08, 2025 12:23 ET (16:23 GMT)

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