Spectrum Brands Reports 10.2% Decline in Q3 Fiscal 2025 Net Sales

Spectrum Brands Holdings, Inc. reported a decline in financial performance for the third quarter of fiscal 2025, with net sales of $699.6 million, down 10.2% from $779.4 million in the same period last year. For the nine-month period ending June 29, 2025, the company generated $2.075 billion in net sales, a decrease of 5.2% compared to $2.190 billion in the prior year. The gross profit for the quarter was $264.1 million, reflecting a 12.8% decline from $302.8 million, while the nine-month gross profit decreased to $775.3 million from $821.2 million, a 5.6% drop.

The company experienced significant changes in its operational metrics, with a notable reduction in customer demand across its segments, particularly in the Global Pet Care (GPC) and Home & Personal Care (HPC) divisions. The GPC segment reported net sales of $255.2 million, down 9.6% year-over-year, while the HPC segment saw a 10.8% decline to $255.2 million. The Home & Garden (H&G) segment also faced a decrease of 10.3%, with sales of $189.2 million. The decline in sales was attributed to lower volumes, inflationary pressures, and increased costs due to tariffs, which impacted profit margins.

In terms of strategic developments, Spectrum Brands has been actively managing its supply chain in response to changing U.S. trade policies and tariffs, particularly those affecting imports from China. The company temporarily paused imports from China but has since reinstated them, aiming to mitigate the impact on fulfillment and distribution. Additionally, the company has been pursuing operational efficiencies and cost management strategies to offset rising costs and protect margins. The restructuring initiatives have resulted in exit and disposal costs of $8.2 million for the nine-month period, primarily related to headcount reductions and operational consolidations.

The company’s financial outlook remains cautious, with management emphasizing the need to navigate ongoing economic uncertainties and potential impacts from geopolitical tensions. As of June 29, 2025, Spectrum Brands had cash and cash equivalents of $122.0 million and borrowing availability of $388.5 million under its credit facility, providing a total liquidity of $510.5 million. The company expects cash flows from operations to be sufficient to meet its operating and capital expenditure requirements for at least the next 12 months, despite the challenges posed by market conditions and tariff-related costs.