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    Breaking News

    Sales Slip at Scott’s Liquid Gold

    ...

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    07.01.19
    Scott’s Liquid Gold Inc. posted operating results for the three months and year ended Dec. 31, 2018. Net sales for the three months ended Dec. 31, 2018 fell 20.7% to $9.1 million. Sales in the household segment decreased 13.7%, in part due to the introduction of similar products by key competitors. Sales in the skin and hair care segment decreased 21.8% due to lower sales of Alpha skin care products, after the company experienced strong sales in the second and third quarters of 2018, and lower sales for 7th Heaven skin care products, as 2017’s favorable fourth-quarter sales for both product lines returned to more historical levels in 2018. These were partially offset by fourth quarter increases in sales of other distributed products.

    Net sales for the year ended Dec. 31, 2018 were $37.1 million, which was a decrease of 12.2% from 2017. Sales in the household segment decreased 9.0%. Sales in the skin and hair care segment decreased 12.6% due to lower sales in both distributed products. These were partially offset by an increase in sales of Alpha Skin Care products.

    President and Chief Executive Officer Mark Goldstein stated, “We experienced sales challenges in December after a strong start to the quarter and several of our mass retail and specialty channel customers began to aggressively reduce inventory levels earlier than their historical patterns.

    “Despite these hurdles, I am proud of our team’s 2018 accomplishments. They worked hard to continue to generate cash flow and value for our shareholders. We were able to generate solid cash flow by focusing our efforts on working capital while paying down the remainder of our debt ahead of schedule. We also relaunched our Prell conditioner, which hit stores in January.”

    Goldstein said the company “remains excited about 2019 and beyond. While the challenges we are facing with sales of our distributed products will impact our first quarter results, we expect sales to strengthen in the second quarter. We remain committed to growing our brands, developing solid line extensions and introducing new products. We are focused on reducing inventory levels, generating cash flow from operations, and looking for strategic opportunities to ensure our company’s long-term growth.”
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