Spectrum Brands Holdings Inc. (NYSE: SPB) saw its shares tumble 6.14% in pre-market trading on Thursday, following the release of its fiscal 2025 first-quarter results and a lukewarm outlook for the full year.

The consumer products company reported mixed results for the quarter ended December 29, 2024. While net sales increased 1.2% year-over-year to $700.2 million, beating analysts' estimates of $704.8 million, adjusted earnings per share (EPS) of $1.02 fell short of the consensus estimate of $1.03.

The company's Global Pet Care (GPC) segment was a major drag, with net sales declining 6.1% due to a strategic acceleration of orders into the prior quarter related to an ERP implementation. The Home & Garden (H&G) segment, however, posted a strong 27.9% increase in net sales, driven by favorable weather conditions and an extended fall selling season.

Spectrum Brands maintained its full-year guidance, projecting low single-digit growth in reported net sales and mid to high single-digit growth in adjusted EBITDA. However, the company warned of ongoing headwinds from inflation, higher tariffs, and increased brand-focused investments, which could weigh on profitability.

While the company's efforts to optimize its operations and pivot production out of China could provide some relief, investors appear concerned about the potential impact of these challenges on Spectrum Brands' bottom line and cash flow generation.