Spectrum Brands reports surprise loss as sales fall more than expected
Spectrum Brands Holdings Inc. reported Thursday a surprise fiscal first-quarter adjusted loss and revenue that fell below expectations. The stock was still inactive in premarket trade. The parent of Pfister, George Foreman and Remington brands swung to a net loss for the quarter to Dec. 30 of $112.5 million, or $2.11 a share, from a profit of $507.4 million, or $15.55 a share, in the same period a year ago, which included a benefit related to tax reform. Excluding non-recurring items, the adjusted loss per share was 20 cents. The FactSet consensus was for earnings of 38 cents a share. Revenue fell 4.9% to $874.6 million, missing the FactSet consensus of $911.0 million, as a 6.4% decline in hardware and home improvement (HHI) and a 7.3% drop in home and personal care (HPC) sales offset 1.1% growth in pet supplies. The decline in HHI sales was due primarily because of strong hurricane-related growth a year ago, while the HPC sales decline was driven by lower personal care revenue. The stock has shed 14% over the past three months, while the S&P 500 has slipped 2.9%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.