Spectrum Brands Holdings has announced its fiscal fourth-quarter sales, which showed a slight increase despite a decline in demand for kitchen appliances. The company, known for its hairbrushes and toaster ovens, reported a profit of $16.8 million, or 47 cents per share, for the three-month period ending September 30. This represents growth from last year’s figure of $14.8 million, or 36 cents per share.
Adjusted Earnings Exceed Expectations
After excluding discontinued operations and one-time items, Spectrum Brands Holdings’ adjusted earnings were $1.36 per share. Analysts surveyed by FactSet had predicted earnings of $1.03 per share. This indicates that the company performed better than expected in terms of its earnings.
Sales Fall Slightly but Beat Analysts’ Estimates
Although sales saw a slight decline of about 1%, dropping to $740.7 million, the figure still surpassed analysts’ estimates of $739.4 million. Softening demand for kitchen appliances and foreign-exchange fluctuations were cited as factors contributing to this decrease in sales. However, the company’s home-and-garden unit recorded a sales increase of over 7%. This growth was attributed to favorable weather conditions.
Transitioning Toward Growth and Improvement
Chief Executive David Maura emphasized that Spectrum Brands Holdings has been actively reducing its inventory, optimizing its profit-margin structure, and divesting non-core businesses. This approach reflects the company’s commitment to not only weathering challenges but also seizing opportunities for growth and improvement.