Prestige Consumer Healthcare Inc. Reports Second Quarter and First Half Fiscal 2026 Results

Core Insights - Prestige Consumer Healthcare Inc. reported second quarter revenues of $274.1 million, a decrease of 3.4% from $283.8 million in the same quarter last year, primarily due to lower sales in the Ear & Eye Care category, particularly for Clear Eyes® [3][12] - The company achieved a net income of $42.2 million for the second quarter, down from $54.4 million in the prior year, with diluted earnings per share of $0.86 compared to $1.09 in the previous year [4][10] - For the first six months of fiscal 2026, total revenues were $523.6 million, a decline of 5.0% from $550.9 million in the same period last year, again attributed to supply limitations for Clear Eyes [6][7] Financial Performance - The second quarter net income was reported at $42.2 million, with non-GAAP adjusted net income at $52.5 million, compared to $54.4 million in the prior year [4][10] - The first six months of fiscal 2026 saw net income of $89.7 million, down from $103.4 million in the same period last year, while non-GAAP adjusted net income increased slightly to $99.9 million from $99.4 million [7][8] - Free cash flow for the first six months was $133.6 million, an increase from $121.4 million in the prior year [9] Shareholder Value - The company repurchased approximately 1.1 million shares for about $75 million during the second quarter, totaling approximately 1.6 million shares repurchased for $109.8 million in the first six months [10][11] - The net debt position as of September 30, 2025, was approximately $0.9 billion, with a leverage ratio of 2.4x [11] Segment Performance - North American OTC Healthcare segment revenues for the second quarter were $230.8 million, down from $239.8 million in the prior year, primarily due to lower sales in the Eye & Ear Care category [12] - International OTC Healthcare segment revenues for the second quarter were $43.4 million, slightly down from $44.0 million in the previous year [14] - For the first six months, North American OTC revenues were $443.3 million, down from $472.1 million, while International OTC revenues increased to $80.3 million from $78.8 million [13][15] Outlook - The company reaffirmed its fiscal 2026 revenue outlook of $1,100 to $1,115 million, with expectations for eye care supply improvements in the second half of the year [16][18] - Adjusted diluted EPS outlook was updated to a range of $4.54 to $4.58, reflecting a slight increase from the previous range [10][18]