Spectrum Brands Holdings Stock

Spectrum Brands Holdings, Inc. operates as a diversified global branded consumer products and home essentials company. The company manufactures, markets, and distributes its products globally in the North America (NA); Europe, Middle East & Africa (EMEA); Latin America (LATAM) and the Asia-Pacific (APAC) regions through a variety of trade channels, including retailers, wholesalers, and distributors. The company enjoys strong name recognition under its various brands and patented technologies across multiple product categories.

Segments

The company operates through three segments: Global Pet Care (GPC), Home and Garden (H&G), and Home and Personal Care (HPC).

Global Pet Care (GPC) segment

This segment includes companion animal and aquatics.

Companion Animal: Products include dog and cat chews, treats, wet and dry foods; dog and cat clean-up, behavioral training aides, health, and grooming products; and indoor bird and other small animal food and care products. Brands include Good'n'Fun, DreamBone, GOOD BOY, SmartBones, IAMS (Europe only), EUKANUBA (Europe only), Nature's Miracle, FURminator, Dingo, 8IN1 (8-in-1), Meowee!, and Wild Harvest.

Aquatics: Products include consumer and commercial aquarium kits, stand-alone tanks; aquatics equipment, such as filtration systems, heaters, and pumps; and aquatics consumables, such as fish food, water management and care. Brands include Tetra, Marineland, Instant Ocean, GloFish, and OmegaSea.

The company sells primarily to large retailers, pet superstores, online retailers, food and drug chains, warehouse clubs and other specialty retail outlets. International distribution varies by region and is often executed on a country-by-country basis. The company's sales generally are made through the use of individual purchase orders. In addition to product sales within the United States, the company performs installation and maintenance services on commercial aquariums. Live fish under its GloFish brand are produced, marketed, and sold by independent third-party breeders through a supply and licensing agreement with the company. A significant percentage of the company's sales are attributable to a limited group of retailer customers, including Walmart and Amazon.

Chews are produced at third-party suppliers in the APAC region and Mexico. Certain other aquatics equipment and companion animal hard goods are also produced at third-party suppliers in the APAC region. The company maintains ownership of most of the tooling and molds used by third-party suppliers.

Aquatics and certain other companion animal products are produced in various manufacturing plants located in the U.S. and Germany, including the production of glass aquariums in the company's Noblesville, Indiana facility, shampoos and aquarium salt in its Blacksburg, Virginia facility, OmegaSea fish food with bird and other small animal products manufactured in its Bridgeton, Missouri facility, and aquatics nutrition and care products manufactured in Melle, Germany. The company continually evaluates capacity at its manufacturing facilities and related utilization.

The company's research and development strategy focuses on new product development and performance enhancements of its existing products. The company plans to continue to use its brand names, customer relationships and research and development efforts to introduce innovative products that offer enhanced value to consumers through new designs and improved functionality.

Competition

Primary competitors are Mars Corporation, Nestle Purina, and the Central Garden & Pet Company all of which sell a comprehensive line of pet products that compete across the company's product categories.

Home and Garden (H&G) segment

This segment includes household, controls, repellents, and cleaning.

Household: Products include household pest control solutions such as spider and scorpion killers; ant and roach killers; flying insect killers; insect foggers; wasp and hornet killers; and bedbug, flea and tick control products. Brands include Hot Shot, Black Flag, Real-Kill, Ultra Kill, The Ant Trap (TAT), and Rid-A-Bug.

Controls: Products include outdoor insect and weed control solutions, and animal repellents, such as aerosols, granules, and ready-to-use sprays or hose-end ready-to-sprays. Brands include Spectracide, Garden Safe, Liquid Fence, and EcoLogic.

Repellents: Includes personal use pesticides and insect repellent products, including aerosols, lotions, pump sprays and wipes, yard sprays and citronella candles. Brands include Cutter and Repel.

Cleaning: Includes household surface cleaning, maintenance, and restoration products, including bottled liquids, mops, wipes, and markers. Its brand is Rejuvenate.

The company sells primarily to large retailers, home improvement centers, mass merchants, dollar stores, hardware stores, lawn and garden distributors, food and drug retailers, and e-commerce. The company sells primarily in the U.S. with some distribution in LATAM. The company's sales generally are made through the use of individual purchase orders. A significant percentage of the company's sales are attributable to a limited group of retailer customers, including Lowe's, Home Depot, and Walmart.

Competition

Primary competitors include The Scotts Miracle-Gro Company (Ortho, Roundup, Tomcat), S.C. Johnson & Son, Inc. (Raid, OFF!), Central Garden & Pet (AMDRO, Sevin), SBM Company (BioAdvanced), Henkel AG & Co. KGaA (Combat), Bona AB (Bona), and Procter & Gamble (Swiffer, Zevo).

Seasonality

Sales typically peak during the first six months of the calendar year (the company's second and third fiscal quarters) and are lowest in the last three months of the calendar year (the company's first quarter) due to customer purchasing patterns, and timing of promotional activities.

H&G produces the majority of its products in one facility in St. Louis, Missouri, with production primarily consisting of liquids and aerosols, and the remaining portion of products being produced by various third-party manufacturers, consisting of granulates, candles, baits and traps, wipes, and Rejuvenate cleaning products. The main raw materials purchased are plastic bottles, steel aerosol cans, corrugate, active ingredients, and bulk chemicals.

The company's research and development strategy focuses on new product development and performance enhancements of its existing products. The company plans to continue to use its brand names, customer relationships, and research and development efforts to introduce innovative products that offer enhanced value to consumers through new designs and improved functionality.

Home and Personal Care (HPC)

This segment includes home appliances and personal care.

Home Appliances: Small kitchen appliances, including toaster ovens, coffeemakers, slow cookers, air fryers, blenders, hand mixers, grills, food processors, juicers, toasters, irons, kettles, and bread makers, cookware, and cookbooks. Brands include Black & Decker, Russell Hobbs, George Foreman, PowerXL, Emeril Legasse, Copper Chef , Toastmaster, Juiceman, Farberware, and Breadman.

Personal Care: Products include hair dryers, flat irons and straighteners, rotary and foil electric shavers, personal groomers, mustache and beard trimmers, body groomers, nose and ear trimmers, women's shavers, and haircut kits. Its brand is Remington.

The company has a trademark license agreement (the License Agreement) with Stanley Black & Decker (SBD) pursuant to which it licenses the Black & Decker brand (B&D) in North America, Latin America (excluding Brazil) and the Caribbean for four core categories of household appliances: beverage products, food preparation products, garment care products and cooking products. The License Agreement has a term ending June 30, 2025, including a sell-off period from April 1, 2025 to June 30, 2025 whereby the company continues to sell and distribute but no longer produce products subject to the License Agreement.

The company owns the right to use the Remington trademark for electric shavers, shaver accessories, grooming products and personal care products; and Remington Arms Company, Inc. (Remington Arms) owns the rights to use the trademark for firearms, sporting goods, and products for industrial use, including industrial hand tools. The company retains the trademark for nearly all products which can benefit from the use of the brand name in its distribution channels.

HPC products are sold primarily to large retailers, online retailers, wholesalers, distributors, warehouse clubs, food and drug chains and specialty trade or retail outlets, such as consumer electronics stores, department stores, discounters and other specialty stores. HPC products are also sold direct-to-consumer through direct response television, brand websites, and other online marketplaces. International distribution varies by region and is often executed on a country-by-country basis. The company's sales generally are made through the use of individual purchase orders. A significant percentage of the company's sales are attributable to a limited group of retailer customers, including Walmart and Amazon.

The company's research and development strategy focuses on new product development and performance enhancements of its existing products. The company plans to continue to use its brand names, customer relationships and research and development efforts to introduce innovative products that offer enhanced value to consumers through new designs and improved functionality.

Competition

Primary competitors for home appliances include Newell Brands (Sunbeam, Mr. Coffee, Crockpot, Oster), De'Longhi America (DeLonghi, Kenwood, Braun), SharkNinja (Shark, Ninja), Hamilton Beach Holding Co. (Hamilton Beach, Proctor Silex), Sensio, Inc. (Bella); SEB S.A.(T-fal, Krups, Rowenta), Whirlpool Corporation (Kitchen Aid), Conair Corporation (Cuisinart, Waring), Versuni (Philips), Donlim (Morphy Richards), Gourmia, and private label brands for major retailers. Primary competitors in personal care include Koninklijke Philips Electronics N.V. (Norelco), The Procter & Gamble Company (Braun), Conair Corporation, Wahl Clipper Corporation, Helen of Troy Limited, SharkNinja (Shark), and Dyson Limited (Dyson).

Seasonality

Sales from electric personal care product categories tend to increase during the December holiday season (the company's fiscal first quarter), while small appliances sales typically increase from July through December primarily due to the increased demand by customers in the late summer for back-to-school sales (the company's fiscal fourth quarter) (year ended September 30, 2023) and in December for the holiday season.

History

The company was founded in 1906. It was incorporated in 2009. The company was formerly known as Zapata Corporation and changed its name to Harbinger Group Inc. in 2009. Further, the company changed its name to HRG Group, Inc. in 2015 and to Spectrum Brands Holdings, Inc. in 2018.