The decrease was also driven by increased competition facing Scott’s Liquid Gold wood care products, where the company initiated selective advertising and marketing programs. Sales in the skin and hair care segment fell 4.6% as strong Alpha skin care product sales were offset by a decrease in sales for 7th Heaven skin care products as 2017’s highly favorable sales returned to “historical levels” in early 2018.
For the nine months, sales fell slightly to $27.9 million.
President and CEO Mark Goldstein stated, “The Scott’s team’s solid performance in 2018 demonstrates our ability to generate strong cash flows and return value to our shareholders. Our strong operating cash flow drove the early paydown of our debt during the second quarter. This was accomplished despite 2018’s slow start in international and distributed product sales.
“I am proud of the team’s efforts to integrate the Prell and Denorex brands. Their transition of production to our Colorado facility drove this performance and established a strong platform for growth. We expect the fourth quarter to be a strong sales quarter, although we expect lower overall gross margins from higher sales of our distributed products.”