Matrixx posts small decrease for off-season quarter

SCOTTSDALE, Ariz. Matrixx Initiatives reported a slight 1.2 percent decline in cough/cold and allergy/sinus sales through its fiscal first quarter ending June 30, with net sales falling to $8.5 million for the out-of-season quarter, but only because the company has $1 million in reserve in anticipation for higher-than-normal returns on last season’s cough/cold products as retailers prepare to pull together the planogram for the 2008/2009 cough/cold season.

That translates into a net loss of approximately $2.3 million for the quarter, which is not too drastic given the quarter only represents 7 percent of the company’s annual sales.

“Overall, we are pleased with the sales results for this out-of-season quarter,” commented Carl Johnson, president and chief executive officer. “We continued to see the Zicam brand realize high consumer consumption growth rates,” he said, noting that Zicam dollar sales and units sold increased approximately 21 percent each for the 12 weeks ending June 15, according to scan data across food, drug and mass with the exception of Wal-Mart.

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