Sales for the first quarter of fiscal 2011 dropped 1% to $2.17 billion, the company said in a statement. Higher promotional spending hurt sales, the company said.
Sales of soups in the U.S. dropped 5%.
"This was due in part to even steeper promotions by competitors, which we chose not to match," Conant said.
The company forecasts net sales to grow 1% - 3% in fiscal 2011, with earnings per share rising 2% to 4%.
"In the second half, we plan to place greater focus on advertising and brand-building initiatives in our marketing efforts, as we adjust our promotional activity to achieve improved price realization," Conant said.