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NEW YORK - Spectrum Brands Holdings Inc . (NYSE:SPB) reported fiscal second quarter earnings and revenue that missed Wall Street expectations on Thursday, citing softening demand in North America.
The company’s shares fell 6.27% in premarket trading following the release.`
The company, which makes products under brands like Black+Decker and George Foreman, said net sales decreased 6.0% to $675.7 million in the quarter ended March 30, falling short of analysts’ estimates of $698.91 million. Adjusted earnings per share came in at $0.68, well below the $1.44 expected by analysts.
Spectrum Brands attributed the weak results primarily to softening North American demand in its Global Pet Care segment, timing of retailer seasonal inventory purchases in Home & Garden, and category demand softening in North American appliances.
"While our second quarter results were challenged by macroeconomic and tariff pressures, we believe that Spectrum Brands is well positioned to navigate this period of uncertainty and ultimately thrive," said David Maura, Chairman and CEO of Spectrum Brands.
The company suspended its fiscal 2025 earnings guidance due to uncertainty caused by global trade conditions and tariffs, as well as softening global consumer demand. However, Spectrum Brands still expects to generate approximately $160 million in free cash flow for the full fiscal year.
Net income from continuing operations fell sharply to $1.8 million, or $0.06 per diluted share, compared to $49.9 million, or $1.65 per diluted share, in the prior year quarter.
Adjusted EBITDA decreased 36.5% to $71.3 million, with adjusted EBITDA margin contracting 500 basis points to 10.6%.
The company said it is accelerating efforts to move its supply base outside of China for the U.S. market across all segments, with a primary focus on its Home and Personal Care business, due to tariff pressures. Spectrum Brands has also implemented measures to reduce input and operating costs and taken pricing actions as needed.
Despite the disappointing quarter, management expressed confidence in the company’s ability to navigate the challenging environment, citing its strong balance sheet, diverse business mix and robust liquidity position.
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