Spectrum reports surprise loss while revenue topped forecast, as 'unprecedented inflation' offset price increases

Spectrum Brands Holdings Inc. SPB, +0.15% reported Friday a surprise fiscal first-quarter adjusted loss even as revenue topped expectations, as the consumer brands company said price increases weren’t enough to offset “unprecedented inflation.” Net income for the quarter to Jan. 2 fell to $8.2 million, or 20 cents a share, from $72.1 million, or $1.68 a share, in the year ago period. Excluding nonrecurring items and discontinued operations, the company swung to an adjusted per-share loss of 6 from earnings per share of 83 cents. The FactSet consensus was for EPS of 54 cents. Sales rose 2.9% to $757.2 million, above the FactSet consensus of $726.8 million, but cost of sales grew 11.2% to $537.6 million to knock gross profit as a percentage of revenue down to 29.0% from 34.3%. Among the company’s business segments, home and personal care sales increased 0.3% to $379.7 million and global pet care sales rose 9.7% to $302.2 million, while home and garden sales fell 8.5% to $75.3 million. For fiscal 2022, the company raised its guidance for the impact of inflation to $310 million to $330 million from $240 million to $260 million. Separately, the company announced an agreement to buy home appliances and cookware company Tristar Products Inc. for up to $450 million, including $325 million in cash at closing. The stock, which was still inactive in premarket trading, has lost 6.7% over the past three months while the S&P 500 SPX, +0.52% has shed 4.3%.