Core Insights - Spectrum Brands Holdings Inc. (SPB) reported strong first-quarter fiscal 2026 results, with earnings and revenue exceeding expectations, leading to a 10.2% increase in share price [1][3][7] Financial Performance - Adjusted earnings per share (EPS) reached $1.40, up from $1.02 year-over-year, and surpassed the Zacks Consensus Estimate of $0.77, primarily due to lower income tax and reduced outstanding shares [3][7] - Net sales declined 3.3% year-over-year to $677 million, exceeding the Zacks Consensus Estimate of $666 million, with organic net sales down 6% when excluding favorable foreign currency impacts of $18.5 million [4][7] - Gross profit fell 16.2% year-over-year to $241.6 million, influenced by lower volumes, increased trade spending, and higher tariff-related costs, resulting in a gross margin contraction of 110 basis points to 35.7% [5][7] - Adjusted EBITDA from continuing operations decreased 15.2% year-over-year to $62.6 million, with an adjusted EBITDA margin contraction of 190 basis points to 9.2% [6][7] Segment Performance - Home & Personal Care segment sales dropped 26.6% year-over-year to $321.5 million, with organic net sales declining 7.6% [8] - Global Pet Care segment sales increased 21.6% year-over-year to $281.6 million, with organic net sales improving 8.3% [11] - Home & Garden segment sales fell 18.2% year-over-year to $73.9 million, with organic net sales down 19.8% [14] Financial Position - As of December 28, 2025, SPB had a cash balance of $126.6 million and total outstanding debt of $578.9 million, with total liquidity of $618.8 million [16] - In the first quarter of fiscal 2026, SPB repurchased 0.6 million shares for $36 million, with an authorized repurchase program of $300 million [17] Outlook - Management expressed confidence in returning the Global Pet Care and Home & Garden segments to growth in fiscal 2026, while aiming for improved profitability across all segments [19] - The company projects flat to low-single-digit growth in reported net sales for fiscal 2026, with adjusted EBITDA expected to rise in the low-single digits [20]