Why Spectrum Brands (SPB) Shares Are Sliding Today - Spectrum Brands Holdings (NYSE:SPB)

Spectrum Brands Holdings Inc SPB reported a fourth-quarter FY22 decline of 1.1% year-on-year to $749.50 million, missing the consensus of $789.82 million.
Net sales from Home & Personal Care increased 11.5%, Global Pet Care sales declined 5.2%, and Home & Garden fell 19.4%.
Gross profit decreased 7.2% Y/Y to $239.5 million, and the margin contracted 210 basis points to 31.9%.
The operating expenses fell 14.9% Y/Y to $223.1 million. The operating margin for the quarter was 2.3%, and the operating income was $16.4 million.
The company held $243.9 million in cash and equivalents as of September 30, 2022.
Adjusted EBITDA decreased 5.6% Y/Y, primarily driven by reduced sales volumes and unfavorable currency impact.
Adjusted EPS of $0.48 missed the consensus of $0.57.
"We were further challenged by retailers' focus on reducing high inventory levels, which led to reduced replenishment orders," said Chairman and CEO David Maura.
Outlook: Spectrum Brands expects low-single-digit reported net sales growth for FY23. The company expects FY23 adjusted EBITDA to increase by low double-digits.
Price Action: SPB shares traded lower by 6.44% at $46.50 on the last check Friday.

Spectrum Brands Q4 Earnings Miss Estimates On Inflation, Supply Chain Snags