Prestige Consumer Healthcare Cuts FY22 Revenue Outlook Amid Supply Chain Issues and Retail Order Volatility

Prestige Consumer Healthcare reported Q1 sales of $250mln, below the forecasted $258-$260mln range, and a 6.6% decline from the previous year. Despite strong international segment growth and gross margin expansion, challenges in the eye care supply chain and retail order volatility led to a lowered revenue outlook. The acquisition of Pillar5 is a strategic move to address these issues, but the immediate outlook remains cautious.

Prestige Consumer Healthcare Inc. (NYSE: PBH) reported its first quarter (Q1) 2026 financial results, with revenue of $249.5 million, a 6.6% decline from the same period last year. The company attributed the decrease to supply constraints in the eye care category, particularly for its Clear Eyes product, and the expected headwind from accelerated order timing in Q4 of the prior year. Despite these challenges, the company reported a 6% increase in diluted earnings per share (EPS) to $0.95, driven by a strong international segment and improved gross margin.

The company's net income for Q1 2026 was $47.5 million, down from $49.1 million in the prior year. Free cash flow increased significantly to $79.0 million, up from $54.8 million in the prior year, primarily due to improved working capital management and lower interest expense.

Prestige Consumer Healthcare also announced the acquisition of Pillar5 Pharma Inc., a leading sterile ophthalmic manufacturer and current supplier of Clear Eyes. The acquisition is expected to be approximately neutral to EPS and is expected to close in the third quarter of 2026. The company believes this acquisition will help address the immediate supply chain issues and support long-term growth opportunities.

Looking ahead, the company revised its fiscal 2026 revenue outlook to $1,100 to $1,115 million and EPS outlook to $4.50 to $4.58. The company expects third-party partner manufacturing to remain complementary to its production at Pillar5, but securing an internal source of reliable sterile eye manufacturing is a strategic priority. The company also anticipates continued growth in the second half of the year due to supply improvements in the eye care category.

Prestige Consumer Healthcare will host a conference call to review its Q1 2026 results today, August 7, 2025, at 8:30 a.m. ET. The conference call and accompanying slide presentation can be accessed from the company's Investor Relations page.

[1] https://finance.yahoo.com/news/prestige-consumer-healthcare-inc-reports-100000813.html