Spectrum Brands Q1 EPS Soars 37%, Sales Dip 3.3% to $677 M
Spectrum Brands reported Q1 fiscal 2026 adjusted EPS of $1.40, up from $1.02 a year ago and beating estimates by $0.63, driven by lower income tax and share reductions. Net sales fell 3.3% to $677 million, with organic sales down 6% due to soft Home & Personal Care demand offset partly by 21.6% growth in Global Pet Care.
1. Quarterly Financial Highlights
Spectrum Brands delivered adjusted EPS of $1.40 in Q1 fiscal 2026, up 37% year-over-year and $0.63 above estimates, buoyed by lower tax expense and reduced share count. Net sales declined 3.3% to $677 million, slightly exceeding the $666 million consensus, as unfavorable category demand weighed on volumes.
2. Segment Performance Breakdown
Home & Personal Care sales dropped 26.6% to $321.5 million, with organic sales down 7.6%, driven by volume weakness across appliances and personal care. Global Pet Care revenues rose 21.6% to $281.6 million, led by Companion Animal brand strength, while Home & Garden fell 18.2% to $73.9 million due to inventory build effects.
3. Liquidity and Balance Sheet
As of Dec. 28, 2025, Spectrum Brands held $126.6 million cash against $578.9 million debt, exiting with net long-term debt of $554.3 million and total liquidity of $618.8 million, including $492.2 million undrawn revolver capacity.