Matrixx Initiatives reports this year's cough/cold/flu season is tracking lower than last year's

SCOTTSDALE, Ariz. This year’s cough/cold/flu season is tracking below even last year’s historically low levels, Matrixx Iniatives reported Monday, though retailers may be in a better position across their respective supply chains this year compared with last.

“For the 12 weeks ended Dec. 28, retail unit sales (three-outlet syndicated scanner data, not including Walmart or club stores) of Zicam products decreased approximately 3%, while the total cough/cold category declined approximately 1% compared to last year,” stated Bill Hemelt, acting president and COO, Matrixx. “While we are disappointed with the slow start to the season, we believe that, unlike last year, certain retailers did not enter the season in an over-stock position and are managing their buying to match increasing retail sales,” he said.

“We anticipate continued sales growth for our proprietary swab delivery products and have moved forward with building a second swab manufacturing machine to come on line in early fall 2009 to meet increasing consumer demand for our swab products,” Hemelt added.

For the third quarter ended Dec. 31, Matrixx reported a revenue increase of 26% to $38.7 million. “The 26% increase in fiscal third-quarter sales was driven by higher sales of Cold Remedy swabs and our new Allergy swab product, price increases implemented prior to the start of the current cold season and lower product return charges incurred compared with last year,” Hemelt said.

“As discussed previously, we had planned our marketing program to better coincide with the incidence of colds, and shifted approximately $3 million in spending from the third quarter to the fourth quarter,” Hemelt added. “The reduced marketing spending in the third quarter was the principal reason operating expense decreased as compared with last year.”