Soon after announcing an offer to acquire Helen of Troy Ltd., Spectrum Brands announced fourth-quarter financial results that beat Wall Street predictions on earnings but not revenue.
Spectrum Brands’ net income from continuing operations was $26.4 million, or $1.08 per diluted share, versus $53.3 million, or $2.19 per diluted share, in the year-earlier quarter, the company reported. Adjusted for one-time events, earnings were $1.39 per diluted share versus $2.61 per diluted share in the year-prior period.
An analyst consensus estimate from Zacks Investment Research pegged earnings per adjusted diluted share at 83 cents and revenues at $721.2 million.
Net sales were $713.2 million versus $733.5 million in the year-before quarter. Operating income was $24.4 million versus $29.4 million in the year-previous period.
Spectrum Brands markets kitchen electrics under the Black & Decker, George Foreman (pictured above), Russell Hobbs, PowerXL and Emeril Lagasse brands, as well as Remington personal care appliances.
The 2.8% decline in sales was due to a decrease in organic net sales of 3.1%, Spectrum pointed out, which excludes a $2.7 million impact from favorable exchange rates. Behind the net sales decline was Home & Garden, for which unfavorable weather conditions and elevated retailer inventory levels hurt replenishment orders, according to the company. Global Pet Care and Home & Personal Care net sales also declined, reflecting softness in aquatics and home appliances, respectively, Spectrum noted.
As to operating segments, Spectrum indicated:
- Home & Personal Care net sales decreased 0.9% in the quarter year over year to $293.4 million. With favorable foreign currency impacts excluded, organic net sales slipped 2.3%. Reported net sales in personal care were flat while net sales in home appliances were down low single digits. North American net sales decreased in the low double digits following distribution losses in home appliances and greater competitive pressure in personal care.
- Home & Garden net sales decreased 9.3% year over year to $126.3 million, and organic net sales declined 9.3%, hit by unfavorable weather conditions and elevated retailer inventory levels, leading to lower replenishment.
- Global Pet Care net sales slid 1.5% year over year to $293.5 million. With unfavorable foreign currency impacts excluded, organic net sales decreased 1.1%. Reported net sales in companion animal gained in the low single digits while sales in aquatics decreased low double digits. North American net sales advanced in the low single digits, getting a boost from the continued market share growth in the companion animal segment across key brands as well as product category growth.
For the full fiscal year, net income from continuing operations was $58 million, or $2.20 per diluted share, versus $100.2 million, or $3.85 per diluted share, in the year earlier. Adjusted diluted earnings per share were $6.80 versus $5.43 in the year prior, the company maintained.
Net sales were $2.85 billion versus $2.81 million in the year before. Operating income was $110.9 million versus $124.9 million in the year previous.
In its outlook for fiscal 2027, Spectrum expects to achieve flat to low single digit growth in reported net sales in fiscal 2027 year over year and flat to up low single digits adjusted EBITDA growth .
Maura addressed the Spectrum Brands bid for Helen of Troy through its Empower Brands partnership in his comments made in conjunction with the fourth-quarter financial results release.
“Last week, our Empower Brands subsidiary, which is jointly owned by us and funds managed by Oaktree Capital Management, announced its interest to acquire Helen of Troy,” Maura noted. “While we are disappointed by their rejection of our offer, we remain optimistic. Now that our proposal has been made public, we look forward to Helen of Troy’s board and its shareholders giving full consideration to the compelling value it represents, and working toward a mutually acceptable agreement.”
Helen of Troy said its board of directors unanimously rejected an unsolicited, non-binding takeover bid of $37 a share, or roughly $1.6 billion, from Empower Brands. Helen of Troy said the bid underestimates the company’s true value without specifying a value. Helen of Troy markets Oxo kitchenware, Hydro Flask beverageware, Osprey outdoor gear, Revlon hair appliances, Honeywell home environment appliances, Vicks and Braun health care products and PUR water filters.
Regarding Spectrum Brands’ fourth-quarter financials, Maura said: “We are pleased with our fiscal 2026 results, with Global Pet Care and Home & Garden both returning to top-line growth, and our key brands continuing to outperform the market across both businesses. In Home & Personal Care, while top-line pressures persisted as expected, the team delivered strong margin expansion, a direct reflection of disciplined execution and a clear focus on profitability. The underlying performance across all three segments demonstrates the strength of our business fundamentals. Balance sheet health remains a priority, and our strong financial position gives us the flexibility to invest in the business and pursue strategic opportunities as they arise. We are entering fiscal 2027 with momentum, and we expect net sales and adjusted EBITDA to both be flat to up low single digits, normalizing for the tariff refund benefit received this year.”
On internal operations, Maura said: “The completion of our S/4 HANA ERP deployment across the entire organization marks a pivotal milestone in our multi-year transformation. Spectrum Brands now operates on a single unified platform, and the most important work is just beginning. We believe this unified platform has the potential to drive meaningful improvements in efficiency, process standardization, and long-term competitive positioning for the company.”
