Fourth quarter net sales at Spectrum Brands were up 5.8% as the company reported strength in its home and garden as well as hardware and home improvement businesses.
For the three months ended September 30, net sales were $1.32 billion, up from net sales of $1.25 billion when compared to the fourth quarter of the prior fiscal year. Net income of $94.9 million and diluted EPS of $1.63 in the fourth quarter of fiscal 2017 increased compared to net income of $89 million and diluted EPS of $1.49 in fiscal 2016.
“We finished a challenging fiscal 2017 with a strong fourth quarter performance,” said Andreas Rouvé, CEO of Spectrum Brands Holdings. “Regionally, growth was driven by our core U.S. business along with strong expansion in our European and Asia-Pacific regions.”
For the year, net sales were $5.01 billion in fiscal 2017, down from sales of $5.04 billion in fiscal 2016.
In the company’s global batteries and appliances division, fourth quarter net sales grew 2.7% to $533.9 million. Net sales in the global personal care product category increased $6.7 million, or 5.6%, led by strong growth in the U.S. and Asia-Pacific and moderate growth in Europe and Latin America.
In the global small appliances segment, net sales in the category fell $5.2 million, or 2.9%. Higher sales in Europe and Latin America, primarily from new product launches and new listings, was offset by lower U.S. and Canadian revenues as a result of sluggish POS, increased competitor promotions and retailer adjustments.
Rouvé said the company, in an effort to sustain the company’s sales momentum, is launching two initiatives; Projects Alpha and Ignite.
For Project Alpha, the company will spend $20 million to accelerate its organic sales growth by expanding into adjacent product segments through selective investment in new product development and strong market launches using new digital and social media marketing campaigns.
In addition, Rouvé said Project Ignite is a company-wide initiative designed to ensure that the company continues to adapt to rapidly changing consumer preferences and retail channels. Resources will be prioritized and allocated to target the company’s best growth opportunities, he said.