Fortune Brands Innovations, Inc. reported a decline in financial performance for the thirteen weeks ended March 29, 2025, with net sales of $1,033.1 million, down 6.9% from $1,109.6 million in the same period last year. The decrease was attributed to lower sales volumes in both U.S. and international markets, which accounted for a $28.9 million drop, alongside unfavorable foreign exchange impacts of $6.6 million. The company's operating income also fell significantly, decreasing by 37.6% to $97.0 million from $155.4 million, primarily due to reduced sales volume and increased restructuring charges totaling $24.8 million.
In terms of profitability, net income for the quarter was $51.4 million, a substantial decrease from $96.4 million in the prior year, reflecting the impact of lower operating income and higher restructuring-related expenses. Basic earnings per share were reported at $0.42, down from $0.77 a year earlier. The effective income tax rate increased to 25.9% from 23.0%, influenced by state income taxes and foreign income taxed at higher rates.
Operationally, the company experienced a decrease in sales across all segments, with the Water segment reporting a 9.6% decline, the Outdoors segment down 3.3%, and the Security segment down 3.7%. The company also noted a significant increase in restructuring charges related to the consolidation of U.S. regional offices and product-line rationalizations. Despite these challenges, Fortune Brands reported improvements in productivity due to strategic sourcing initiatives and manufacturing efficiencies.
On the balance sheet, total assets increased slightly to $6,584.8 million from $6,561.8 million, while total liabilities rose to $4,280.2 million from $4,139.8 million. The company’s cash and cash equivalents decreased to $340.0 million from $381.1 million, reflecting cash used in operations and investments. The company also repurchased 2.6 million shares for $175.0 million during the quarter, with a remaining authorization of approximately $900.0 million for future repurchases.
Looking ahead, Fortune Brands remains focused on managing costs and mitigating the impacts of tariffs and inflation. The company is committed to pursuing organic growth initiatives and strategic acquisitions while maintaining a strong capital structure. Despite the current challenges in the housing market, Fortune Brands believes that the fundamental drivers for growth remain intact and is positioned to navigate the evolving landscape effectively.
About Fortune Brands Innovations, Inc.
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