Spectrum Brands Q1 EPS $1.40 Tops Estimates; Sales $677M
Spectrum Brands reported adjusted Q1 EPS of $1.40, up from $1.02 a year ago and topping the $0.77 consensus, while net sales declined 3.3% to $677 million versus forecasts of $666 million. Organic sales fell 6% excluding $18.5 million in favorable currency impacts, driven by softer Home & Personal Care demand.
1. Q1 Results Overview
Spectrum Brands delivered adjusted EPS of $1.40 in fiscal Q1 2026, up 37% year over year and well above the $0.77 consensus. Net sales of $677 million declined 3.3% but beat the $666 million estimate, aided by cost-improvement actions and pricing measures.
2. Segment Performance
The Home & Personal Care unit saw a 26.6% sales drop to $321.5 million, offset by 21.6% growth in Global Pet Care sales to $281.6 million. Home & Garden declined 18.2% to $73.9 million, reflecting a prior-year pull-forward in retailer inventory builds.
3. Margin and EBITDA Trends
Gross profit fell 16.2% to $241.6 million, with margins contracting 110 basis points to 35.7%. Adjusted EBITDA dropped 15.2% to $62.6 million, and the margin narrowed 190 basis points to 9.2%, pressured by tariffs and trade spending.
4. Balance Sheet and Liquidity
At quarter end, cash stood at $126.6 million against $578.9 million in debt, leaving total liquidity of $618.8 million. Net long-term debt was $554.3 million, supported by an undrawn revolver capacity of $492.2 million.