Spectrum Brands down on trimming FY sales, core profit forecast

Spectrum Brands Holdings

12/05/2023 13:21

** Shares of Spectrum Brands Holdings Inc  SPB.N  down ~5%
at $67.95 premarket
    ** The consumer and home products maker trims its 2023 sales
and adjusted EBITDA forecasts hurt by lower demand and inventory
reductions by retailers
    ** CEO David Maura says "we are facing some additional
short-term headwinds as our key retail partners for the Home and
Garden categories have continued to reduce inventory in the
quarter compared to a typical seasonal build"
    ** Adds "we now expect our sales in the year to be below
consumer demand, which should normalize once we get past the
current fiscal year"
    ** SPB now expects reported net sales to decline by
mid-single-digits in fiscal 2023 vs previous outlook of flat
reported net sales
    ** It sees adj EBITDA, a measure of profitability, to
decline by low to mid single-digits vs prior expectations of 
increase by low double-digits
    ** "(Guidance) cut seemed highly likely," says Wells Fargo
analyst Chris Carey
    ** Co also misses Q2 net sales and adjusted EPS estimates
    ** Up to Thursday's close, stock had risen 17.1% YTD 
       

 (Reporting by Granth Vanaik in Bengaluru)
 ((Granth.Vanaik@thomsonreuters.com; Twitter: https://twitter.com/Vanaik_Granth))