HAIN Stock Jumps 12% Despite Reporting Q1 Loss & Y/Y Sales Decline

Core Insights - Hain Celestial Group, Inc. (HAIN) reported a decline in both top and bottom lines for Q1 fiscal 2026, with net sales of $367.9 million, a 6.8% year-over-year decrease, while adjusted loss per share was 8 cents, wider than the consensus estimate of 4 cents [1][3][4] Financial Performance - Net sales exceeded consensus estimates but declined year over year, with organic net sales down 5.8% due to a 7-point decrease in volume/mix, partially offset by a 1-point increase in pricing [4] - Adjusted gross profit was $71.9 million, down 12.3% from the previous year, with an adjusted gross margin of 19.5%, lagging behind the estimated 20.4% [4] - SG&A expenses decreased by 8.2% to $65.5 million, representing 17.8% of net sales, a reduction of 30 basis points year over year [5] - Adjusted EBITDA was $19.7 million, down 11.8% from the prior year, with an adjusted EBITDA margin of 5.4% [5] Segment Performance - North America segment net sales fell 11.8% to $203.9 million, with organic net sales down 7.4% due to weaker snack volumes [6] - International segment net sales totaled $164 million, a slight increase of 0.3% year over year, but organic net sales declined 3.9% [9] - In the Snacks category, organic net sales dropped 17.2%, while the Baby & Kids category saw a decline of 9.5% [12] Cash and Debt Overview - The company ended the quarter with cash and cash equivalents of $47.9 million and long-term debt of $708.6 million [14] - Free cash flow for the quarter was an outflow of $14 million, an improvement from $17 million in the prior year, driven by better inventory management [15]