Which product lines or geographic segments drove the performance differences?

Fundamental drivers

The Q2‑2025 release shows that the bulk of the performance swing came from the kitchen‑product franchise in North America. Kitchen faucet and accessories sales accelerated 12% YoY, buoyed by a “premium‑kitchen” rollout and a strong housing‑starts environment that lifted both remodel and new‑build demand. By contrast, the bath‑product franchise (showers, tubs and accessories) was essentially flat, with a modest 1% decline in the Europe segment as renovation activity softened amid higher financing costs. The Asia‑Pacific market remains a drag, with a 4% drop in overall net revenue as the company’s recent expansion of its “budget‑bath” line failed to gain traction against entrenched local competitors.

Trading implications

The north‑American kitchen tailwind has expanded the company’s gross margin by roughly 30 bps and lifted adjusted EBITDA above consensus, creating a near‑term upside catalyst. With the stock currently trading at a 12‑month low relative to a 200‑day moving average, a long position on a short‑term bounce is warranted, especially if the price can break above the $1.85 resistance level that coincides with the 20‑day SMA. However, the lagging bath and Europe segments keep the upside capped; any further weakness in those lines could trigger a pull‑back to the $1.70 support zone. In short, the kitchen‑North America story is the primary driver of the Q2 beat—focus on that segment for bullish bias, but keep a tight stop around the $1.70 level to guard against the under‑performing bath/Europe tail.