Spectrum Brands Slashes Second-Quarter Loss

MADISON, Wis.-Spectrum Brands reported a net loss for its fiscal second quarter of $28.7 million, down from last year's second-quarter net loss of $50.2 million.

Rising sales and lower expenses helped the company's bottom line. Net sales in the quarter, which ended on April 1, increased 7.6 percent to $746.3 million. This included a gain of 4.5 percent in Spectrum's Global Batteries & Appliances business, which in itself included a 7 percent increase in global personal-care products sales (including the Remington brand) and a pickup of 3.8 percent in sales of small electrics--a category that Spectrum entered with its acquisition of the Russell Hobbs business in 2010.

Selling, general and administrative expenses fell 1.8 percent in dollars and 223 basis points as a percentage of sales, to 25 percent. Gross margin declined 197 basis points to 34.8 percent, due to cost increases in commodities and the Asian supply chain, and changes in the product mix.

Dave Lumley, Spectrum's CEO, said the second-quarter results point to "another year of growth and shareholder value creation in fiscal 2012." Lumley said the second half of the year should bring more gains in sales and "a swing to net income from net loss."

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN May digital issue

    HFN's DIGITAL EDITION

    May 2017


    COVER STORY: HFN Turns 90

    We commemorate HFN's 90th anniversary by paying tribute to the iconic retailer and supplier brands--and the people--that have helped the industry flourish, then and now.


    ALSO IN THIS ISSUE:

    • Up & Coming Leaders - The home industry is in capable and visionary hands as this year’s 40 Under 40 list attests. Today’s young leaders span all disciplines and varied levels of operation.
    • Omnichannel Retailing - In the Mobile App World, Time is Money