Spectrum Brands Q2 Sales Up, Net Loss Grows

Second quarter company-wide sales at Spectrum Brands Holdings increased with growth seen in three of its four key product segments.

Total sales for the three month period increased 2.7% to $906.7 million. Net loss was $54 million, or $1.06 diluted loss per share, compared with a net lose of $34.7 million, or $1.00 diluted loss per share, in the comparable quarter the previous year.

Company officials said the increased net loss was driven by one-time interest charges related to early debt extinguishment and foreign exchange losses associated with multi-currency divestiture loans.

By product segment, net sales in the Hardware & Home Improvement division were up 4%, increased 1.8% in Global Pet Supplies while the Home & Garden division had a sales increase of 14.1%. Sales in Home & Personal Care were down 4.1%.

The decline in Home & Personal Care was driven primarily by lower personal care revenues, company officials said, partially offset by improved small appliances revenues.

Personal care sales fell in the U.S. predominantly as a result of prior-year hair care distribution losses in mass and food/drug channels and in Europe primarily from e-commerce and U.K. food/drug channel softness.

Net sales for small appliances increased primarily from growth in the U.S. mass channel in coffeemakers and garment care, partially offset in Europe by foreign exchange and Brexit-related consumer softness in the U.K. Excluding unfavorable foreign exchange impacts of $11.8 million, organic net sales increased 1%.

David Maura, chairman and CEO of Spectrum Brands Holdings, said the company is currently conducting an analysis of its global operating model in an effort to identify opportunities for performance improvement and operating efficiencies across all its businesses.

“At the same time, we continue to refine our organizational structure with new leadership in key roles, expand our innovation pipeline across all four businesses, and meaningfully step up investment spending behind our strongest brands,” he said.