Fortune Brands Innovations, Inc. reported a decline in financial performance for the twenty-six weeks ended June 28, 2025, with net sales of $2.24 billion, a decrease of 4.8% compared to $2.35 billion in the same period last year. The company's net income also fell to $151.6 million, down from $230.2 million, reflecting a 34.2% decrease. The decline in revenue was attributed to lower sales volumes in both U.S. and international markets, as well as unfavorable foreign exchange impacts. The company implemented price increases to offset some of the tariff-related costs, which partially mitigated the revenue decline.
In terms of operational changes, Fortune Brands undertook significant restructuring efforts, including the consolidation of U.S. regional offices into a single campus in Deerfield, Illinois. This initiative is expected to incur total charges between $50 million and $80 million, with $47.6 million already recorded in the first half of the fiscal year. The restructuring is part of a broader strategy to enhance operational efficiency and reduce costs across all segments, which include Water, Outdoors, and Security.
The company's Water segment reported net sales of $1.21 billion, down 5.7% from the previous year, primarily due to decreased sales volume and unfavorable foreign exchange. The Outdoors segment also saw a 3.0% decline in sales to $683.6 million, while the Security segment's sales decreased by 5.4% to $340.6 million. Despite these declines, the Water segment's operating income was $259.3 million, although this was an 11.3% decrease from the prior year. The Outdoors and Security segments experienced even steeper declines in operating income, down 24.8% and 27.7%, respectively.
Looking ahead, Fortune Brands remains focused on strategic growth initiatives, including potential acquisitions and investments in product innovation. The company is also monitoring macroeconomic factors such as inflation and interest rates, which could impact consumer spending and housing market dynamics. The effective income tax rate for the first half of 2025 was reported at 30.1%, up from 22.2% in the prior year, reflecting changes in state income taxes and foreign income tax rates. The company declared a cash dividend of $0.25 per share, payable in September 2025, indicating a commitment to returning value to shareholders despite the current challenges.
About Fortune Brands Innovations, Inc.
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