Third quarter sales at Spectrum Brands were down slightly as the company was negatively impacted by bad weather in the spring and prior-year listing losses in its Home & Personal Care division.
Total sales for the three months ended June 30 were $1.022 billion, down from sales of $1.029 billion in the comparable quarter the previous year. Net loss from continuing operations was $24.7 million compared to net income of $398.9 million the third quarter of 2018.
By division, net sales in Hardware & Home Improvement were down 4.8% to $354.6 million, down 4.3% to $243.4 million in Home & Personal Care, up 13.9% to $221.7 million in Global Pet Care and down 2.6% to $202.5 million in Home & Garden.
According to the company, net sales for small appliances decreased primarily from prior-year lost distribution in the U.S. mass channel in coffeemakers and toaster ovens while personal care sales in the U.S. fell predominantly as a result of prior-year hair care distribution losses in the mass channel. These were partially offset by growth in Europe, primarily in the e-commerce and U.K. food/drug channels, as well as growth in Latin America.
David Maura, chairman/CEO of Spectrum Brands, said during the quarter the company invested approximately $20 million on the first phase of its Global Productivity Improvement Plan. It also executed approximately $35 million of annualized sourcing savings, the majority of which will be realized in fiscal 2020.
“Additional opportunities have been identified across procurement, G&A, process standardization, supply chain and distribution and are expected to be realized over the next 24 to 36 months, with a substantial portion of these savings to be reinvested in research and development, marketing and enabling capabilities to drive growth and improve the efficiency of our platform,” Maura said.