Spectrum Brands Holdings Inc. (SPB Quick QuoteSPB - Free Report) reported strong second-quarter fiscal 2026 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Earnings and sales improved year over year.

Insight Into SPB’s Q1 Performance

SPB reported adjusted earnings of $1.25 per share, increasing significantly from 68 cents in the year-ago quarter and surpassing the Zacks Consensus Estimate of $1.04. The earnings improvement was primarily buoyed by decreased outstanding shares and higher adjusted EBITDA.

Spectrum Brands Holdings Inc. Price, Consensus and EPS Surprise

Spectrum Brands Holdings Inc. price-consensus-eps-surprise-chart | Spectrum Brands Holdings Inc. Quote

Spectrum Brands' net sales rose 4.9% year over year to $708.9 million and beat the consensus mark of $673 million by 5.4%. Organic net sales increased 1.5%, excluding the favorable foreign currency impacts of $22.9 million. The sales gain was mainly driven by strong results in Global Pet Care and Home & Garden, supported by market share gains across key brands. Favorable weather and retailer order pull-forward also helped. These positives were partly offset by softer consumer demand in Home & Personal Care across North America and Europe.

The gross profit rose 6.7% year over year to $270.3 million, driven by pricing, cost improvement actions and favorable foreign exchange, partially offset by higher trade spend and tariff costs. The gross margin expanded 60 bps year over year to 38.1%.

Adjusted EBITDA from continuing operations increased 17.8% to $84.0 million, lifting the adjusted EBITDA margin to 11.8% from 10.6%, reflecting improved gross margins.

Spectrum Brands’ Segmental Performance

Sales in the Home & Personal Care segment fell 5.5% year over year to $240.1 million. Excluding favorable currency impacts, organic net sales moved down 10.7%. Net sales in Personal Care decreased in the low-single digit, while net sales in Home Appliances declined in the high-single digit. 

Excluding the favorable currency impacts, organic net sales in EMEA declined across both Home Appliances and Personal Care, pressured by elevated inventory levels at a key retailer following soft consumer demand and increased competition. LATAM organic sales rose in the mid-single digits on sustained Personal Care growth. In North America, sales fell in the mid-teens, mainly due to lower volumes stemming from higher product costs tied to tariffs and customer inventory actions aimed at working through excess stock.

The segment's adjusted EBITDA of $8.1 million was up 11% year over year, driven by pricing, reduced investment spend, cost improvement initiatives and favorable foreign exchange, somewhat offset by lower volumes and higher tariff costs.

The Global Pet Care segment's sales advanced 11.2% year over year to $299.3 million. Excluding favorable foreign currency impacts, organic net sales rose 7.6%. Within the segment, Companion Animal sales grew at a low double-digit pace, while Aquatics sales advanced in the mid-single digits.

North America led the improvement, supported by market share gains across Companion Animal brands and solid momentum in e-commerce. In EMEA, organic sales increased in both categories, reflecting sustained brand strength, broader distribution and a planned pull-forward of retailer orders ahead of the SAP S/4HANA ERP rollout.

The segment's adjusted EBITDA climbed to $56.8 million from $50.0 million in the prior-year quarter, and the adjusted EBITDA margin expanded 20 bps to 19.0% from 18.6%. Profitability improved on higher volumes, pricing and cost-reduction actions, though those benefits were partly offset by higher tariff costs and increased trade and investment spending.

The Home & Garden segment's sales rose 11.3% year over year to $169.5 million, with organic net sales increasing 11.2%. The growth in net sales was primarily backed by favorable weather, which supported stronger point-of-sale trends and improved retailer ordering patterns. The segment also delivered above-market growth across several key brands.

The segment's adjusted EBITDA fell 30.6% year over year to $34.8 million, while the adjusted EBITDA margin expanded 300 bps to 20.5%. Adjusted EBITDA rose, driven primarily by higher sales volumes, productivity gains and improved operational efficiencies, partially offset by higher trade spend and unfavorable mix.

Spectrum Brands’ Other Financials

As of March 29, 2026, SPB had a cash balance of $125.1 million. It had an outstanding debt of $599.7 million, including $24 million outstanding borrowings on the revolver, $496.1 million of senior unsecured notes and $79.6 million of finance leases. The company had a total liquidity of $595.9 million, comprising the undrawn capacity on its cash flow revolver of $470.8 million. It exited the quarter with a net long-term debt of $474.6 million.

SPB’s FY26 Outlook

Spectrum Brands updated its fiscal 2026 framework following the quarter, while maintaining its net sales view of flat to up low single digits. The company now expects adjusted EBITDA to be up low to mid single digits and continues to target approximately 50% conversion of adjusted EBITDA to adjusted free cash flow.

On the strategic front, the company announced a partnership with Oaktree Capital Management for its Home & Personal Care business after quarter-end, including a $127 million cash investment in preferred equity and debt. Spectrum Brands expects to retain approximately 73% ownership of the Appliances business, with closing anticipated later in the month.

Shares of the Zacks Rank #4 (Sell) company have gained 7.5% in the past three months against the industry's 7.2% decline.

SPB Stock's Price Performance

Image Source: Zacks Investment Research

Stocks to Consider

Vince Holding Corp. (VNCE Quick QuoteVNCE - Free Report) provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale and Vince Direct-to-Consumer segments. At present, the company flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for VNCE’s current fiscal-year sales implies growth of 4.5%, and the same for earnings suggests a decline of 15.9% from the year-ago reported figures. VNCE has delivered a trailing four-quarter earnings surprise of 647.2%, on average.

Under Armour, Inc. (UAA Quick QuoteUAA - Free Report) , together with its subsidiaries, engages in developing, marketing and distributing performance apparel, footwear and accessories for men, women and youth. At present, Under Armour sports a Zacks Rank of 1.

The Zacks Consensus Estimate for Under Armour’s current fiscal-year sales and earnings implies declines of 3.8% and 64.5%, respectively, from the year-ago reported figures. UAA has delivered a trailing four-quarter earnings surprise of 140.3%, on average.

Columbia Sportswear Company (COLM Quick QuoteCOLM - Free Report) , which is a marketer and distributor of outdoor and active lifestyle apparel, footwear, accessories and equipment, currently carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for COLM’s current financial-year sales is expected to rise 2.4% from the corresponding year-ago reported figure. COLM delivered a trailing four-quarter earnings surprise of 44.1%, on average.