Spectrum Brands sees pet business gain ground despite aquatics decline

Spectrum Brands’ Global Pet Care (GPC) division reported a 3.3% year-on-year (YoY) increase in net sales to $263.7 million (€232.1M) in the third quarter of fiscal year (FY) 2026, which ended on 28 June.

Organic net sales increased by 2.9%, supported by the company’s key Companion Animal brands. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) nearly doubled to $84.4 million (€74.3M), up 91.8%.

The manufacturer attributed the improvement to pricing, favorable product mix and cost improvement initiatives, which were partially offset by higher tariff costs and increased investment spending.

Growth by segment

Net sales in the companion animal segment increased by mid-single digits, while aquatics sales declined by mid-single digits. 

In North America, net sales increased, led by the pet category, which benefited from modest category growth and continued market share gains across key brands. 

In Europe, the Middle East and Africa (EMEA), organic net sales declined in both categories, despite the strength of its brands and wider distribution. Spectrum Brands partly attributed the decline to certain retailers strategically accelerating orders into the second quarter.

Spectrum Brands’ CFO Faisal Qadir told investors that the company’s top brands across chews, stain and odor control, and grooming “all maintained or gained” market share in the quarter.

“Sales also benefited from a softer prior-year comparison, stemming from the temporary suspension of shipments to key retail partners during pricing negotiations, which deferred orders from Q3 to Q4 of last year,” Qadir added. 

Results were also partially offset by an approximately $3 million (€2.6M) headwind from e-commerce orders shipped early into the prior quarter.

Brand performance and online initiatives

Good Boy, the company’s pet food and treats brand, “continued to outperform the competition,” according to the CFO, driven by distribution gains in continental Europe and expanded market position in the UK. 

“In aquatics, we gained market share within a declining category, where the e-commerce channel delivered strong year-over-year gains,” he added.

In addition, Spectrum Brands recently launched its Good ’n’ Fun and DreamBone brands on TikTok Shop as part of its digital initiatives.

Looking at company-wide results, total net sales increased 7.7% YoY to $753.3 million (€662.9M) in Q3 FY26, with growth across all businesses. Home & Garden (H&G) led the increase, benefiting from market share gains in key brands and favorable weather conditions early in the quarter.

Guidance

Spectrum Brands maintained its FY2026 outlook for flat to low-single-digit growth in reported net sales. It expects GPC and H&G to return to growth, partly offset by an anticipated decline in Home & Personal Care (HPC) due to category softness and supply chain simplification initiatives.

However, the company raised its FY2026 adjusted EBITDA outlook to mid-single-digit growth, forecasting cost improvement initiatives, pricing actions and favorable foreign exchange (FX) to support the increase, offsetting inflation and tariff costs.