Overview
- Adjusted EPS came in at $0.64 versus about $0.73 expected, with net sales down 8% to $4.44 billion and narrowly ahead of revenue forecasts.
- Organic net sales declined 3% and trailed Nielsen‑tracked retail trends by roughly 1.5 percentage points, indicating market‑share pressure.
- Adjusted gross margin fell about 280–310 basis points and adjusted operating margin dropped roughly 420 basis points, driven by higher input costs and mix.
- Management kept FY2026 guidance unchanged: organic sales down 1.5%–2% and adjusted operating profit and EPS down 16%–20% in constant currency, citing a 53rd week to aid Q4.
- Recent broker moves underscored caution, with Wells Fargo cutting the stock to Underweight with a $35 target and Barclays trimming its target to $43, as shares traded near $39 post‑results.