Spectrum Brands falls on trimming FY results forecasts

Spectrum Brands Holdings

12/05/2023 15:11

(Updates)
    ** Shares of Spectrum Brands Holdings Inc  SPB.N  down 3.1%
at $69.14 in morning trade 
    ** Stock on course for fourth straight day of losses
    ** The consumer and home products maker trims 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 that "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 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 results estimates
    ** Including session moves, stock up 15.5% YTD

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