Spectrum Brands Net Sales Decline In Q1

Spectrum Brands reported results from continuing operations for the first quarter of fiscal 2020 ended December 29, 2019, with overall net sales slightly decreasing although the company saw growth in its home and personal care division.

Net sales decreased 1% to $871.5 million in the quarter. Excluding the impact of $6.3 million of unfavorable foreign exchange, organic net sales decreased 0.3%, with growth in home and personal care and global pet care, offset by declines in home and garden and hardware and home improvement.

The company reported a net loss of $37.7 million in the quarter and a diluted loss per share of $0.81 were driven by an operating loss, partially offset by the unrealized gain on Energizer common stock, lower interest expense and shares outstanding.

In the home and personal care division, net sales of $322.1 million were driven by growth in Europe in both personal care and small appliances. Net sales in the U.S. declined at a more moderate rate compared to fiscal 2019, with declines in personal care and small appliances pressured by department store and specialty channels. Excluding unfavorable foreign exchange impacts of $5.2 million, organic net sales grew 3.2%.

“We experienced organic growth in home and personal care and global pet care, while timing issues in home and garden and hardware and home improvement drove us flat overall during the quarter. The decline in adjusted EBITDA was in line with our expectations as tariffs exceeded the ramp-up of our productivity improvements. We expect to resume sales growth this quarter and, additionally, savings from our Global Productivity Improvement Plan are expected to offset our tariff headwinds. We continue to expect net sales, adjusted EBITDA and free cash flow growth in 2020,” said David Maura, chairman and CEO of Spectrum Brands Holdings.