Spectrum Brands Holdings (NYSE:SPB) shares rose in premarket action on Friday after reporting first quarter profits that surpassed analyst expectations.

The Wisconsin-based consumer products company notched a $0.32 loss for the quarter, better than the $0.39 loss anticipated by analysts. Meanwhile, a 5.8% decline in revenue from the prior year to $713.3M came up $44.97M short of expectations. The company reduced inventory levels by $65M in the quarter, but noted that still-elevated retailer inventories impacted sales.

“Our financial results for the quarter demonstrate our renewed focus on profitability, financial discipline and cost management. We are pleased that our first quarter EBITDA exceeded expectations, despite continued heavy inventory levels at retail weighing on the volume of products sold during the quarter,” CEO David Maura said. “As we anticipated, we continue to be challenged by a difficult economic environment and face lower consumer demand compared to strong COVID related demand growth a year ago.”

He added that a bulk of higher cost inventory will be shipped in the first half of the fiscal year, aiding a rebound in profitability later in the year. Maura also expects further pricing actions to defend the bottom line.

However, the company updated sales forecasts to be flat for the full year, revised from a low-single-digit forecast offered in November 2022. Adjusted EBITDA is still expected to increase by low double-digits.

Shares of Spectrum Brands (SPB) rose 1.29% shortly after the earnings announcement.