Spectrum Brands reports Q3 adjusted EPS $1.24, consensus $1.24

Reports Q3 revenue $699.6M, consensus $738.33M. “Our results this quarter reflect Spectrum Brands (SPB) making the right but difficult long-term decisions for the Company. When the tariff rate on Chinese imports to the US went to 145% early in the third quarter, we paused virtually all purchases from China and accelerated our plans to further diversify our supply base. We strategically began importing again when the rate dropped to 30%, but the almost 2 months we went without importing some products meant that we were unable to fill all orders this quarter. We also negotiated tariff-related pricing with our retailers. In some cases, when those negotiations stalled, we stopped shipping until negotiations were finalized. We now have our initial rounds of pricing in place, but our quarterly sales were negatively impacted by these stop shipments. We also saw continued soft US and European consumer demand in our Global Pet Care and Home and Personal Care businesses, while a wet and cool early summer affected the start to the Home and Garden season. We have now put Q3 in the rearview mirror and are focusing on the remainder of fiscal 2025 and the future. Supply is turned back on, we are diversifying our supply base, and we have our initial pricing in place. We have also looked internally and reduced costs by over $50 million in fiscal 2025,” said David Maura, Chairman and Chief Executive Officer of Spectrum Brands.