The first quarter net sales at Spectrum Brands Holdings saw a slight decrease of 0.6% to $1.21 billion compared to $1.22 billion in fiscal 2016. Excluding the negative impact of $18.8 million of foreign exchange, organic net sales increased 1% reportedly due to record results in the global batteries and appliance segment and improvements in the small electrics segment.
The company reported net income of $65.2 million, or $1.10 diluted EPS, in the first quarter of fiscal 2017. In the first quarter of fiscal 2016, net income was $73.6 million, or $1.24 diluted EPS.
“These results maintain the momentum from our record fiscal 2016 and provide a good start to achieving an 8th consecutive year of record financial performance in fiscal 2017,” said Andreas Rouvé, Spectrum Brands CEO.
Net sales for the global personal care product category of $162.6 million in the first quarter of fiscal 2017 fell 3.7% compared to $168.8 million last year. Excluding negative foreign exchange impacts of $3.7 million, organic net sales declined 1.5%. Growth in constant currency in Europe, primarily in hair care appliances and hair removal, Latin America and Asia-Pacific was offset by lower North American revenues. The North American decline was primarily due to fewer promotions and distribution adjustments at key retailers.
Net sales of $186.4 million in the global small appliances product category in the first quarter of fiscal 2017 declined 1.8% compared to $189.9 million in the year-ago quarter. Excluding negative foreign exchange impacts of $7.5 million, organic net sales increased 2.1%. The improvement was attributed to strong growth in North America from a combination of distribution gains, incremental listings, effective promotions and e-commerce growth, as well as a modest increase on a currency neutral basis in Europe.
“As expected, our sales performance was challenged by a difficult comparison to our large quarterly organic revenue increase last year in the first quarter of 6.3%,” Rouvé said. “Our flat 2017 first quarter reported sales and organic growth of 1% were impacted by planned exits of unprofitable businesses of approximately $8 million and two fewer shipping days of approximately $20 to $25 million, which combined had an approximately 2.5% adverse effect on our top line. The shipping days impact will largely benefit the fourth quarter.”