Spectrum Brands Q1 Sales Up, Appliance Sales Soft

Total first quarter sales at Spectrum Brands grew double-digits, but the company saw sales declines in small appliances and personal care products.

For the period ending January 3, company officials said total revenue for the quarter was $1.22 billion, an increase of 14.1% year-over-year. Excluding the negative impact of $61.4 million and sales from recent acquisitions of $144.9 million, organic sales increased 6.3% from the prior year.

Net income was reported as $73.6 million and diluted earnings per share of $1.24 in the first quarter of fiscal 2016 compared to net income of $49.8 million and diluted earnings per share of $0.94 in fiscal 2015.

“Our solid first quarter performance is an excellent start to achieving a seventh consecutive year of record performance in fiscal 2016,” said Andreas Rouvé, Spectrum Brands CEO.

The company’s Global Batteries & Appliances segment reported fiscal 2016 first quarter net sales of $611.3 million versus $636.5 million in the year-ago quarter. Excluding the negative impact of $52.8 million of foreign exchange, fiscal 2016 first quarter net sales increased 4.3%.

On a constant currency basis, higher net sales for the battery and personal care categories offset lower small appliance category revenues, company officials said.

Net sales for the company’s global personal care product category were $168.8 million in the first quarter of fiscal 2016, down from net sales of $172.5 million for the prior year. Excluding negative foreign exchange impacts of $16 million, fiscal 2016 first quarter net sales increased 7.1%.

According to the company, the results were attributable to new retail customers and the timing of holiday shipments in North America and growth on a currency neutral basis in Europe and Latin America from a combination of promotions and new customers in hair care, hair removal and grooming.

The global small appliance product category reported net sales of $189.9 million compared to $223.8 million in the year-ago quarter. Excluding negative foreign exchange impacts of $13.3 million, fiscal 2016 first quarter net sales decreased 9.2%.

The decline was primarily attributable to competitor discounting and softer category performance in North America, partially offset by increases on a constant currency basis in Europe and Latin America from innovation and new listings, the company said.