How Spectrum Brands plans to double down on pet assets

Spectrum Brands has reported a 7% year-over-year decline in its global pet care net sales for the second quarter of its fiscal year (FY) ending 30 March 2025.

Net sales for global pet care totaled $269.2 million (€240M) compared to $289.9 million (€258M) during the same period in 2024.

The parent company’s pet brands, including Nature’s Miracle, FURminator, Good Boy, SmartBones and Wild Harvest, also posted a 6.3% decline in organic sales in the pet portfolio.

Group sales

Spectrum Brands’ overall net sales, which include garden products and home and personal appliances brands such as Juiceman and Russell Hobbs, decreased by 6%, with softening US consumer demand in pet care cited as a key factor.

“For the quarter, consumer sentiment in the US declined faster than we had expected for our Global Pet Care and Home and Personal Care businesses, impacting category growth,” explains CEO and Chairman David Maura.

Net income from continuing operations was $1.8 million (€1.6M), down $48 million (€43M).

Food and treats

The Wisconsin-based firm believes that, with asset prices resetting, it is in an “ideal position” to strengthen its portfolio.

“Our vision is to at least double the size of our pet asset organically and through acquisition into areas such as niche food/treats, health and wellness and the growing cat segment,” states Maura.

“We believe that we can position the portfolio more toward power-branded, faster-turning consumables while adding scale, which will lift the trading-multiple of Spectrum Brands.”

Spectrum Brands’ CEO also highlights that the new leader for global pet care, Ori Ben Shai, will help the company expand into sustainable consumable pet categories, targeting growth in niche food, health and wellness segments.

Trade challenges

The company has not provided an earnings framework for FY2025 due to ongoing challenges in global trade, but Maura states that it has ensured the maximization of cash and mitigated tariff impacts.

“We have paused the import of virtually all finished goods purchases from China until the tariff levels decline to an amount where we can maintain our profitability and margins,” he says.

For its pet portfolio, after beginning the fiscal year with approximately $100 million (€89.3M) of US-bound product purchases from China, Spectrum Brands says it expects to reduce that exposure to approximately $20 million (€17.9M) by the end of the fiscal year.