It was a challenging first quarter for Spectrum Brands Holding as the company reported declines in net sales and a net loss for the three month period ended December 30.
Net sales for the quarter were $874.6 million, down 4.9% from the comparable quarter the previous year. Net loss from continuing operations was $29.7 million, or $0.56 per diluted share. The company in the first quarter of the prior fiscal year reported net income of $40 million.
In the company’s Home & Personal Care division, net sales for the quarter were $317.2 million, down 7.3% from the previous year.
According to the company, the drop in first quarter net sales were driven primarily by lower global personal care revenues and, to a lesser extent, global small appliances revenues.
The personal care category sales fell double-digit in the U.S. primarily due to prior-year distribution losses in mass and food/drug categories, e-commerce channel softness and soft consumer demand in the United Kingdom.
Net sales for the small appliances product category decreased predominantly as a result of e-commerce category softness in the U.S. and in Europe and also soft consumer demand in the U.K.
David Maura, chairman and CEO of Spectrum, said results in Home and Personal Care were consistent with internal expectations of a slow start to this year as the company focuses on improving business fundamentals.
“As we stabilize our Home & Personal Care business this year, we are stepping up investments to accelerate innovation and increase marketing support behind our strong and well-known brands, including our just announced 5-year partnership between Remington and Manchester United,” Maura said. “We believe this alliance will be an outstanding opportunity to showcase the depth and strength of our Remington line worldwide and begin the process of further strengthening the incredible brand equity of this business.”
The agreement with Manchester United of England’s Premier League makes Remington the club’s Official Electrical Styling Partner. The partnership, which includes both the men’s and women’s teams, will see Remington and the club working together to deliver high-impact marketing campaigns to grow the Remington brand globally.
Maura also noted that Spectrum has completed the sale of its Global Battery and Lighting and Global Auto Care businesses. The proceeds of those sales were used to repay more than $2.2 billion in debt.