Spectrum Brands Holdings, the manufacturer of hairbrushes and toaster ovens, has announced a profit of $29.1 million, or 85 cents a share, for the first quarter of its fiscal year. This is a significant improvement compared to the same period last year when the company reported a loss of $20.9 million, or 51 cents a share. Adjusted earnings, which exclude one-time items such as divestiture and recall costs, came in at 78 cents a share. Analysts had predicted earnings of only 53 cents a share.
Although sales for the quarter decreased by 3% to $692.2 million, this was still higher than the expected $674.2 million. The decline in sales can be attributed to weak demand for small kitchen appliances in North America and a decrease in volume in certain pet channels.
Chief Executive David Maura is optimistic about the company’s future and has outlined plans to focus on restoring revenue growth. Spectrum Brands Holdings will also be accelerating its efforts to separate its Home & Personal Care unit.
