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Core Viewpoint - Spectrum Brands Holdings Inc. (SPB) has experienced a significant decline in its stock price, dropping 17.1% over the past three months, underperforming both the industry and broader market indices [1][14]. Performance Overview - The stock closed at $69.81, nearing its 52-week low of $68.74 reached on March 21 [1]. - The company's stock performance has lagged behind the Zacks Consumer Discretionary sector, which rose by 3.6%, and the S&P 500, which dipped by 3.8% [1]. Factors Affecting Performance - Spectrum Brands is investing heavily in brand improvement, online sales, and supply chain enhancements, which is currently straining its finances [4]. - Increased costs from new trade tariffs, particularly affecting the Home & Personal Care (HPC) segment, are expected to hurt profits until cost-cutting measures are implemented [5]. - The company is restructuring its HPC business by divesting certain parts, but delays or unfavorable outcomes could hinder financial expectations [6]. - A strong U.S. dollar is negatively impacting international sales, particularly in Europe, despite the company's strategies to mitigate currency effects [7]. Growth Strategies - Despite challenges, Spectrum Brands' growth initiatives, particularly in e-commerce, are anticipated to improve stock performance [8]. - E-commerce sales contributed over 30% to global HPC revenues and mid-20% to Global Pet Care (GPC) revenues in the first quarter of fiscal 2025 [8]. - The company is expanding inventory, improving fill rates, and launching new products to sustain e-commerce growth [10]. Financial Performance - In the first quarter of fiscal 2025, gross profit increased by 5.3% year over year, supported by higher sales and cost-saving measures [12]. - Gross margin expanded by 140 basis points to 36.8%, indicating improved profitability [12]. - The company expects a slight increase in net sales and mid-to-high single-digit growth in adjusted EBITDA for fiscal 2025, driven by sales growth and cost improvements [13]. Outlook - Spectrum Brands is facing short-term challenges from rising costs and financial pressures due to significant investments in brand-building and e-commerce [14]. - Management remains optimistic about modest sales and EBITDA growth in fiscal 2025 as growth initiatives take effect [15].

Spectrum Brands Holdings Inc. (SPB) has encountered a notable resistance level, prompting caution among investors from a technical standpoint. It has been trading below the 200-day and 50-day simple moving averages (SMAs) for quite some time now, suggesting a bearish trend.Currently, at $73.38, SPB remains below its 200-day and 50-day SMAs of $86.95 and $81.72, respectively, indicating a possible sustained downward trend.SPB Trades Below 200 & 50-Day SMAImage Source: Zacks Investment ResearchSpectrum Brands ...

Spectrum Brands Inc. (SPB) has risen 2.8% since reporting first-quarter fiscal 2025 results on Feb. 6, 2025. This reflects an outperformance compared with its industry peers, the broader sector and the S&P 500 index. The Zacks Consumer Products – Discretionary industry and the S&P 500 have declined 0.8% and 0.7%, respectively, in the same period. Meanwhile, the Consumer Discretionary sector has risen 1.1% since Feb. 6.The stock’s modest growth since its earnings release reflects mixed sentiments among inves ...

Spectrum Brands Holdings Inc. (SPB) reported first-quarter fiscal 2025 results, wherein the top line increased year over year but missed the Zacks Consensus Estimate. The company’s earnings surpassed the Zacks Consensus Estimate and increased year over year.The company delivered a strong performance in the first quarter of fiscal 2025, driven by its brand-focused investments and e-commerce expansion. Building on last year’s momentum, key business segments saw notable growth, with the Home and Personal Care ...

Company Overview - Spectrum Brands Holdings, Inc. (NYSE: SPB) is a diversified consumer goods company that has a presence in many households through its products [1]. Business Focus - The company operates in three broad categories, although specific categories are not detailed in the provided text [1]. Research Principles - Grassroots Trading emphasizes providing objective, unbiased, and balanced research, focusing on small- to mid-cap companies while also identifying opportunities in larger companies [1].

Fiscal 2025 First Quarter Earnings Call February 6, 2025 Forward-looking Statements 3 Adjusted EBITDA and Adjusted EBITDA Margin - Adjusted EBITDA and adjusted EBITDA Margin are non-GAAP metrics used by management, which we believe are useful to investors to measure the operational strength and performance of our business. These metrics provide investors additional information about our operating profitability for certain non-cash items, non-routine items we do not expect to continue at the same level in th ...

Spectrum Brands Holdings, Inc. (NYSE:SPB) Q1 2025 Earnings Conference Call February 6, 2025 9:00 AM ET Company Participants Joanne Chomiak - SVP, Corporate Tax & Treasury David Maura - Chairman & CEO Jeremy Smeltser - CFO Conference Call Participants Brian McNamara - Canaccord Genuity Ian Zaffino - Oppenheimer Olivia Tong - Raymond James Peter Grom - UBS Peter Lukas - CJS Securities Operator And good day, and thank you for standing by. Welcome to the first quarter 2025 Spectrum Brands Holdings, Inc. Earning ...

For the quarter ended December 2024, Spectrum Brands (SPB) reported revenue of $700.2 million, up 1.2% over the same period last year. EPS came in at $1.02, compared to $0.78 in the year-ago quarter.The reported revenue represents a surprise of -0.19% over the Zacks Consensus Estimate of $701.54 million. With the consensus EPS estimate being $0.91, the EPS surprise was +12.09%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determi ...

Financial Performance - Net sales for the three-month period ended December 29, 2024, increased to $700.2 million, up from $692.2 million in the same period last year, representing a growth of 1.5%[15] - Gross profit rose to $257.8 million, compared to $244.9 million in the prior year, reflecting an increase of 5.5%[15] - Operating income significantly improved to $44.7 million, up from $25.0 million, marking an increase of 78.8%[15] - Net income from continuing operations was $24.6 million, compared to $17.5 million, which is a year-over-year increase of 40.0%[15] - Basic earnings per share from continuing operations increased to $0.87, up from $0.51, representing a growth of 70.6%[15] - Net income for the three-month period ended December 29, 2024, was $23.8 million, a decrease of 18.5% compared to $29.2 million for the same period in 2023[18] - Comprehensive loss for the three-month period ended December 29, 2024, was $(25.6) million, a significant decline from a comprehensive income of $45.5 million in the same period of 2023[18] - Total segment adjusted EBITDA increased to $87.5 million for the three months ended December 29, 2024, compared to $78.7 million for the same period in 2023, representing an increase of 10.9%[81] - Net income from continuing operations attributable to controlling interest was $24.3 million for the three months ended December 29, 2024, up from $17.4 million in the prior year, reflecting a growth of 39.7%[84] Assets and Liabilities - Total assets decreased to $3,614.6 million as of December 29, 2024, down from $3,842.3 million at the end of the previous quarter[13] - Total liabilities decreased to $1,586.0 million from $1,700.6 million, indicating a reduction of 6.7%[13] - The company’s total shareholders' equity as of December 29, 2024, was $2,028.5 million, a decrease from $2,300.8 million as of December 31, 2023[20] - Total debt as of December 29, 2024, is $575.1 million, a decrease from $577.7 million on September 30, 2024[44] Cash Flow - Cash flows from operating activities from continuing operations showed a net cash used of $(71.9) million for the three-month period ended December 29, 2024, compared to a net cash provided of $18.1 million in the same period of 2023[24] - Total cash, cash equivalents, and restricted cash at the end of the period was $182.0 million, down from $445.4 million at the end of the same period in 2023[24] - The company reported a net cash used by financing activities of $(97.3) million for the three-month period ended December 29, 2024, compared to $(439.8) million in the same period of 2023[24] - Cash flows from operating activities decreased by $90.0 million to $(71.9) million, primarily due to increased working capital needs[116] - Cash flows from investing activities dropped by $139.5 million, attributed to reduced short-term investment activity[117] - Cash flows from financing activities increased by $342.5 million, mainly due to lower debt repayment and share repurchase activity[118] Inventory and Expenses - Inventories increased to $507.4 million from $462.1 million, reflecting a rise of 9.8%[13] - Selling, general & administrative expenses decreased to $213.1 million, representing 30.4% of net sales, down from 31.8% in the prior year[105] - The company reported depreciation expenses of $14.0 million for the three-month period ended December 29, 2024, slightly down from $14.4 million in the same period of 2023[24] - The Company incurred total costs of $4.8 million related to strategic transactions and restructuring initiatives for both December 29, 2024, and December 31, 2023[95] - Exit and disposal costs for the three months ended December 29, 2024, were $0.5 million, primarily related to severance and contract termination[96] Segment Performance - The GPC segment reported net sales of $260.0 million, down from $276.9 million, indicating a decline of about 6.3% year-over-year[76] - The H&G segment experienced a significant increase in net sales, rising to $92.1 million from $72.0 million, reflecting a growth of approximately 27.9%[76] - The HPC segment's net sales remained relatively stable, increasing slightly to $348.1 million from $343.3 million, a growth of about 1.4%[76] - The GPC segment reported adjusted EBITDA of $51.5 million for the three months ended December 29, 2024, slightly down from $52.7 million in the prior year[81] - The H&G segment showed a significant improvement with adjusted EBITDA of $9.3 million for the three months ended December 29, 2024, compared to a loss of $0.7 million in the same period of 2023[81] - The HPC segment maintained adjusted EBITDA at $26.7 million for both periods, indicating stable performance[81] Shareholder Returns - The company declared a dividend of $0.47 per share, an increase from $0.42 per share in the previous year[15] - The company made cash dividend payments of $13.2 million, or $0.47 per share, down from $14.1 million, or $0.42 per share, in the prior year[118] Other Financial Metrics - The effective tax rate for the three-month period ended December 29, 2024, was 32.5%, a decrease from 41.6% for the same period in 2023[67] - Interest expense significantly decreased by 67.7% to $6.2 million from $19.2 million due to reduced debt borrowings[100] - Adjusted EBITDA decreased to $77.8 million for the three months ended December 29, 2024, from $84.3 million in the same period of 2023, a decline of 7.7%[92] - Adjusted EBITDA margin was 11.1% for the three months ended December 29, 2024, down from 12.2% in the prior year[92] Legal and Regulatory Matters - The company is currently evaluating the impact of recently issued accounting standards on its consolidated financial statements, including ASU 2023-07 and ASU 2023-09, which will be effective for fiscal years beginning after December 15, 2023, and December 15, 2024, respectively[29][31] - The company continues to assess the impact of the OECD's Pillar Two framework, which introduces a global minimum corporate income tax of 15%[68] - The company is actively engaged in litigation related to the Tristar Business acquisition, which has resulted in significant operational challenges and increased costs[72]