Spectrum Brands Holdings Inc. warned it expects the economic environment to deteriorate as it reported a drop in sales in the financial fourth quarter.
The Middleton, Wisconsin-based company said net sales fell 1.2% to $740.7 million in the quarter ended September 30 compared to a year ago, driven by lower consumer demand for kitchen appliances and the negative impact of exiting several non-strategic categories in the GPC business.
Net income totalled $53.5 million swinging from a net loss of $24.8 million the year before, with adjusted EPS of $1.36 compared to $0.48 before.
The increases reflected lower interest expense, interest income, gains from debt repurchases, and income tax benefits, the company said.
Spectrum expects to deliver a low single-digit net sales decline and high single-digit adjusted Ebitda growth for financial 2024, as Chief Executive David Maura warned of top-line pressure.
He said the firm enters 2024 “with a strong balance sheet, healthier margins and better inventory profile.”
But he believes the overall macro-economic environment will “continue to deteriorate and will result in top-line pressure, particularly in our Home and Personal Care business.”
Shares in Spectrum rose 2.7% in pre-market trading.