Springs Loss Widens in Third Quarter

[caption id="attachment_7019" align="alignleft" width="225"]        [/caption]

MONTES CLAROS, Brazil-Declining sales in all key product categories increased Springs' Global's third-quarter net loss to $40 million from a net loss of $14.9 million in the third quarter of last year.

Net sales for the company as a whole in the quarter, which ended on Sept. 30, totaled $278.9 million (using the average currency conversion rate of the Brazilian real to the U.S. dollar for the quarter), down 14 percent from last year. All three textiles categories experienced double-digit sales drops worldwide. Fashion bedding sales were down 17.3 percent, bath-products sales fell 34.1 percent and utility bedding sales were off 11.1 percent. Reduced unit volumes and the appreciation of the Brazilian real in the quarter combined to produce these sales decreases, Springs said in a statement.

Although gross-margin dollars were down 16.5 percent, Springs' gross margin percentage actually increased 150 basis points in the quarter to 18.3 percent, the result of its passing along price increases to customers. Selling expenses fell 2.8 percent, and general and administrative expenses dropped 4.5 percent. Both items reflected the appreciation of the Brazilian currency along with the company's cost-cutting efforts.

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

  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More 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 August 2017 cover

    HFN's DIGITAL EDITION

    August 2017


    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    ALSO IN THIS ISSUE:

    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.