Spectrum Brands (SPB) Drops 2.63% to 2022 Low After Earnings Miss

Spectrum Brands Holdings Inc. (SPB) shares rose 0.79% today, marking the second consecutive day of gains, with a total increase of 0.96% over the past two days. However, the share price fell to its lowest level since November 2022 today, with an intraday decline of 2.63%.

The strategy of buying SPB shares after they reach a recent low and holding for one week resulted in poor performance over the past five years. The strategy yielded an excess return of -82.65% and a CAGR of -10.91%, significantly underperforming the benchmark return of 57.98%. Additionally, the strategy had a high maximum drawdown of -45.49% and a Sharpe ratio of -0.40, indicating significant risk and negative returns.

Spectrum Brands' stock price has been influenced by a notable earnings miss for the second quarter of 2025. The company reported earnings per share (EPS) of $0.68, which fell short of analysts' expectations. This earnings miss has raised concerns among investors about the company's financial performance and future prospects. The company's management has attributed the shortfall to various factors, including supply chain disruptions and increased operational costs. Despite these challenges, Spectrum Brands remains optimistic about its long-term growth prospects and has reiterated its commitment to delivering value to shareholders.