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Spectrum Brands to Report Q1 Earnings: What's in the Offing?

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Key Takeaways

  • SPB's Q1 FY26 outlook reflects tariffs, paused China imports and category softness across most segments.
  • SPB sees gross margin pressure from soft volumes, negative mix, inflation and tariffs.
  • SPB's Home & Garden gains help offset softness, while supply-chain upgrades pressure near-term results.

Spectrum Brands Holdings, Inc. (SPB - Free Report) is expected to register top and bottom-line declines when it reports first-quarter fiscal 2026 results on Feb. 5, 2026, before the opening bell. The Zacks Consensus Estimate for SPB’s revenues is pegged at $666 million, indicating a drop of 4.9% from the year-ago quarter. 

The consensus estimate for Spectrum Brands’ earnings per share (EPS) is pegged at 77 cents, indicating a decrease of 24.5% from the figure in the year-ago quarter. The consensus mark for EPS has been stable in the past 30 days. 

In the last reported quarter, the company delivered an earnings surprise of 239%. SPB has recorded an earnings surprise of 50.2% in the trailing four quarters, on average.

Factors Likely to Influence SPB's Q1 Results

Spectrum Brands’ first-quarter fiscal 2026 results are expected to reflect the continued impacts of its macroeconomic headwinds. The quarterly performance is likely to  show the severe impact of global trade volatility, with the U.S.-China tariff environment emerging as the biggest disruptor. Also, supply constraints from pausing Chinese-sourced imports previously in the fiscal year and category softness are likely to have been somewhat offset by higher sales in H&G from positive shifts in seasonal sales. 

In addition, soft volumes, negative mix, inflation and tariffs have been weighing on gross margin. Weak consumer confidence has been a headwind in European markets, hurting the Personal Care and Home Appliances categories. Moreover, performance across most segments is likely to have been hurt by macro demand weakness and external challenges. 

Spectrum Brands’ ongoing efforts to divest or restructure the Home & Personal Care segment are likely to have faced headwinds from geopolitical uncertainties and operational complexities. These factors are expected to have delayed the progress on strategic transactions, limiting management’s ability to unlock value in the near term. Soft consumer demand across discretionary categories, particularly in the HPC segment. We note that the Zacks Consensus Estimate for SPB’s Home & Personal Care segment’s sales is pegged at $323 million for the first quarter of fiscal 2026, down 7.2% year over year.

On the flip side, the company has been focused on enhancing brand equity, expanding its e-commerce footprint and modernizing its supply chain, all of which are core pillars of its growth transformation. The company is focused on pricing, cost-improvement efforts and operational efficiencies.

What the Zacks Model Unveils for SPB Stock 

Our proven model does not conclusively predict an earnings beat for Spectrum Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter

Spectrum Brands has an Earnings ESP of -9.96% and a Zacks Rank #4 (Sell) at present.

SPB Stock’s Price Performance & Valuation Picture

From a valuation perspective, Spectrum Brands has a forward 12-month price-to-earnings ratio of 13.83X, which is lower than the Zacks Consumer Products – Discretionary industry’s average of 16.71X. The stock has a five-year high of 57.40X. 

The recent market movements show that SPB’s shares have gained 20.3% in the past six months compared with the industry's 4.9% growth.

Stocks With the Favorable Combination

Here are some companies, which according to our model, have the right combination of elements to beat on earnings: 

Ralph Lauren (RL - Free Report) currently has an Earnings ESP of +0.53% and a Zacks Rank of 2. RL is likely to register growth in its top and bottom lines when it reports third-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.3 billion, indicating a 7.9% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.  

The consensus estimate for Ralph Lauren’s earnings is pegged at $5.78 per share, implying a 19.9% jump from the year-ago quarter. The consensus mark for earnings has moved up 1% in the past 30 days.

MGM Resorts International???(MGM - Free Report) currently has an Earnings ESP of +10.26% and a Zacks Rank of 3. MGM is likely to register a top-line increase when it reports fourth-quarter 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.4 billion, indicating a 2% rise from the figure reported in the year-ago quarter.  

The consensus estimate for MGM Resorts’ fourth-quarter earnings is pegged at 64 cents a share, implying a 42.2% imcrease from the year-earlier quarter. The consensus mark has moved down a penny in the past 30 days.  

lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.54% and a Zacks Rank of 3. LULU is likely to register top-line decrease when it reports fourth-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.6 billion, indicating 0.2% drop from the figure reported in the year-ago quarter. 

The consensus estimate for LULU’s fourth-quarter earnings is pegged at $4.74 a share, implying a 22.8% decrease from the year-earlier quarter. The consensus mark has dipped 0.8% in the past 30 days. 

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