Prestige Consumer Healthcare Reports Q1 Revenue Decline Due to Eye Care Supply Issues
Prestige Consumer Healthcare Inc. reported a first-quarter revenue decrease, primarily driven by supply constraints for its Clear Eyes product line. The company also announced an agreement to acquire eye care manufacturer Pillar5 Pharma.
Prestige Consumer Healthcare Inc. (NYSE:PBH) announced its financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The company reported revenue of $249.5 million, a decrease of 6.6% compared to the same period last year. This decline was largely attributed to limited supply for its Clear Eyes brand.
The company's diluted earnings per share (EPS) for the quarter stood at $0.95, an increase of approximately 6% compared to the prior year's adjusted diluted EPS of $0.90. Net income was $47.5 million. While the international OTC healthcare segment showed strong growth and gross margin improved year-over-year, the issues with Clear Eyes impacted overall performance.
Prestige Consumer Healthcare also disclosed an agreement to acquire Pillar5 Pharma Inc., a current supplier of its eye care products. The acquisition aims to expand the company's eye care production capacity. Management believes this move will strengthen the supply chain, particularly for the Clear Eyes brand.
For the full fiscal year 2026, Prestige Consumer Healthcare has revised its outlook. The company now anticipates revenue to be between $1,100 million and $1,115 million, with diluted EPS projected to range from $4.50 to $4.58. CEO Ron Lombardi noted that despite the supply challenges in the first quarter, improvements are expected in the second half of the year, and the acquisition is positioned to support long-term shareholder value.