- Spectrum Brand (NYSE:SPB) reports organic net sales declined of 3.7% in Q2.
- Segment sales: Hardware & Home Improvement: $318.5M (+1.5%); Global Pet Supplies: $211.2M (+10.1%); Home and Garden: $118.1M (-10.5%); Global Auto Care: $118.3M (-0.6%).
- Global Batteries & Appliances segment has been reclassified as held for sale and is now reported as discontinued operations.
- Gross margin rate squeezed 560 bps to 40.6%, primarily due to the operating start-up inefficiencies in Hardware & Home Improvement and Global Auto Care from the Kansas and Dayton facility consolidations described above, along with higher input costs, weather-driven unfavorable mix, and the negative impact of the Pet U.S. rawhide safety recall.
- Operating margin rate squeezed 830 bps to 5.6%.
- Adjusted EBITDA margin fell 610 bps to 15.1%.
- FY2018 Guidance: Net sales: to grow above category rates for most categories; Adjusted EBITDA from continuing operations: ~$600M to $617M; Free cash flow: ~$485M to $505M; Capex: $110M to $120M.
- Previously: Spectrum Brands misses by $0.45, misses on revenue (April 26)
- SPB -19.35% premarket.
- Now read: Aaron's reaffirms FY2018 guidance
Original article