Newell Brands Inc. reported that its Play segment, formerly Jarden Outdoor, generated net sales of $782 million, a 14.2 percent increase compared with $685 million in the prior year.
Pro forma core sales declined 1.2 percent as solid growth on Beverages, Coolers and Team Sports was more than offset by a decline on Fishing related to broad retail inventory destocking across specialty and mass retailers and the negative impact of a key retail customer bankruptcy.
Reported operating income in the segment was $89 million compared with $2.2 million in the prior year, largely due to the absence of the negative impact of inventory step-up related to the acquired Jarden businesses in the prior year. Reported operating margin was 11.4 percent of sales, versus 0.3 percent in the prior year. Normalized operating income was $103 million versus $98.8 million in the prior year. Normalized operating margin was 13.1 percent of sales compared with 14.4 percent last year, as increased advertising and promotion investment was only partially offset by cost synergies and savings.
The Play segment includes Newell Brands’ Outdoor & Recreation, Fishing and Team Sports divisions. Brands include Coleman, Campingaz, Marmot, Contigo and Bubba in the Outdoor & Recreation category; Abu Garcia, Berkley, Shakespeare, Penn and Ugly Stik in the Fishing category; and Rawlings in the Team Sports category.
On July 18, Kohlberg & Company LLC completed the acquisition of the Winter Sports business of Newell Brands Inc., including Völkl, K2, Marker, Dalbelo, Madshus, Line, Full Tilt, Atlas, Tubbs, Ride and BCA. The purchase price was $240 million.
Zoot and Squadra, which were also part of the review announced last October, were sold in a separate transaction to Zoot Squad Inc., a California corporation founded by certain members of the current management team.
Newell Brands’ other brands include Paper Mate, Sharpie, Dymo, EXPO, Parker, Elmer’s, Oster, Sunbeam, FoodSaver, Mr. Coffee, Rubbermaid Commercial Products, Graco, Baby Jogger, NUK, Calphalon, Rubbermaid, Contigo, First Alert, Waddington and Yankee Candle.
Photo courtesy Rawlings