Newell Brands reported sales in its Outdoor & Recreation segment reached $427 million compared with $453 million in the prior year period, down 5.7 percent. The declines reflect core sales growth of 2.5 percent offset by exits from low margin categories and unfavorable foreign exchange.

Key brands in the Outdoor & Recreation segment include Campingaz, Coleman, Contigo, ExOfficio, and Marmot. Smaller brands include Aerobed, Bubba and Stearns.

Reported operating income at the Outdoor & Recreation segment was $46 million, or 10.8 percent of sales, compared with $48 million, or 10.6 percent of sales, in the prior year period. Normalized operating income was $52 million, or 12.2 percent of sales, compared with $52 million, or 11.5 percent of sales, in the prior year period.

Companywide, Newell Brands reported net sales were $2.5 billion, a 6.5 percent decline compared to the prior year period, as core sales growth of 1.7 percent was offset by the impact of the sale of the CH&S business at the end of the first quarter 2022, unfavorable foreign exchange, as well as category and retail store exits. Net sales were above the second quarter 2019 level, excluding the CH&S business during both time periods.

Newell had projected sales in the quarter would range from $2.52 billion to $2.57 billion.

The company reported a net income of $204 million, or $0.49 diluted earnings per share, compared with $197 million, or $0.46 diluted earnings per share, in the prior year period. Normalized net income was $236 million, or $0.57 normalized diluted earnings per share, compared with $239 million, or $0.56 normalized diluted earnings per share, in the prior year period.

Non-GAAP EPS of 57 cents beat Newell’s guidance calling for normalized net income in the range of 45 to 48 cents a share and Wall Street’s consensus estimate of 47 cents.

Newell Brands also includes Rubbermaid, FoodSaver, Calphalon, Sistema, Sharpie, Paper Mate, Dymo, EXPO, Elmer’s, Yankee Candle, Graco, NUK, Rubbermaid Commercial Products, Spontex, Oster, Sunbeam, and Mr. Coffee. The Outdoor & Recreation segment makes up about 14 percent of sales. Its four other segments are Commercial Solutions, Home Appliances, Home Solutions, Learning and Development.

“We are pleased with Q2 results, which demonstrate the power of our portfolio and another quarter of terrific execution by our team in a difficult environment. Core sales increased 1.7 percent on top of a 25.4 percent comparison from the prior year, as Q2 was the eighth consecutive quarter of core sales growth for the company. Normalized operating margin improved 100 basis points versus last year, despite significant inflation,” said Ravi Saligram, Newell Brands CEO. “Over the past several years, we’ve become a more agile, consumer- and customer-centric organization, and are confident we have the right strategies in place to navigate the softening macro backdrop while building competitive advantage.”

Chris Peterson, President and CFO, said, “We drove strong results in the second quarter, as we remained financially disciplined, and, in July, we successfully implemented the first wave of Project Ovid, a significant milestone in Newell’s supply chain transformation journey. We are updating our full year 2022 outlook for foreign exchange while maintaining our top and bottom line outlook on a constant currency basis.”

Newell’s updated outlook for the full year calls for:

  • Sales are expected to range between $9.76 billion to $9.98 billion, down from previous guidance in the range of $9.76 billion to $9.98 billion;
  • Core Sales are still expected to be flat to 2 percent growth;
  • Normalized Operating Margin is expected to range between 11.2 percent to 11.4 percent, down from previous guidance of 11.5 percent to 11.8 percent; and
  • Normalized EPS is expected to range between $1.79 to $1.86, down from previous guidance of $1.85 to $1.93.

Photo courtesy Coleman