Continued momentum at Coleman and recovery at its Contigo and Marmot brands helped Newell Brands’ Outdoor & Recreation segment grow 28.3 percent in the second quarter, marking its second straight quarter of growth.

The Outdoor & Recreation segment includes Aerobed, Bubba, Campingaz, Coleman, Contigo, Marmot, Stearns, and ExOfficio.

Sales in the segment reached $453 million in the second quarter compared with $353 million a year ago. The improvement reflects core sales growth of 25.0 percent and the impact of favorable foreign exchange. Net sales exceeded the second quarter of 2019 level.

Reported operating income in the segment was $48 million, or 10.6 percent of sales, compared with the reported operating income of $24 million, or 6.8 percent of sales, in the prior-year period. Normalized operating income was $52 million, or 11.5 percent of sales, compared with $33 million, or 9.3 percent of sales, in the prior-year period.

“Just like other businesses that were negatively impacted by the pandemic last year, we saw a significant acceleration in Outdoor & Recreation as core sales increased 25 percent, with growth in every region and every major category,” said Ravi Saligram, Newell’s president and CEO, on a conference call with analysts.

The quarter marked the Outdoor & Recreation segment’s second consecutive quarter of core sales growth with all regions growing double digits in Q221.

The 25 percent gain in core sales growth builds on the 7 percent core gain in its first quarter that was driven by strength in Coleman’s equipment categories such as coolers, tents and stoves. Strong growth at Coleman continued in the second quarter.

Saligram said, “Coleman, the largest brand in this business unit, delivered terrific results as one of the largest contributors to the company’s top-line growth this quarter.”

He added that Coleman’s “The Outside is Calling” campaign is bolstering the outdoor equipment category for Coleman.

The Outdoor & Recreation segment also saw a resurgence in sales growth for its on-the-go beverage brands, which include Contigo and Bubba, and its technical apparel businesses, which include Marmot and Ex Officio. Saligram said the turnaround in the categories was “driven by robust demand.”

He added, “In beverage, Contigo’s newly launched product lines are off to a strong start and are driving share gains in the hydration category.”

The beverage business had been expected to rebound as on-the-go activities such as team sports pick up and schools reopen.

Companywide, Newell’s sales were $2.7 billion, a 28.3 percent increase compared to the prior-year period, as core sales growth of 25.4 percent and favorable foreign exchange were slightly offset by the impact of business and retail store exits. Net sales were 9.2 percent above the second quarter 2019 level.

Newell operates four other segments: Commercial Solutions, Home Appliances, Home Solutions, and Learning & Development. Other major brands include Rubbermaid, Paper Mate, Sharpie, Dymo, EXPO, Parker, Elmer’s, Coleman, Marmot, Oster, Sunbeam, FoodSaver, Mr. Coffee, Rubbermaid Commercial Products, Graco, Baby Jogger, NUK, Calphalon, First Alert, Mapa, Spontex, and Yankee Candle.

Reported gross margin was 32.6 percent compared with 31.5 percent in the prior-year period, as the benefit from fixed cost leverage, fuel productivity savings, business mix, and pricing more than offset the significant headwind from inflation, particularly related to resin, sourced finished goods, transportation and labor. The normalized gross margin was 32.7 percent compared with 31.6 percent in the prior year period.

Reported operating income was $305 million compared with the reported operating income of $163 million in the prior-year period. Normalized operating income was $341 million, or 12.6 percent of sales, compared with $215 million, or 10.2 percent of sales, in the prior-year period.

Net income of $197 million, or 46 cents per share, compared with a net income of $78 million, or 18 cents, in the prior-year period. Normalized net income grew 88.1 percent to $239 million, or 56 cents per share, from $127 million, or 30 cents, a year ago.

Newell raised its overall sales outlook to a range between $10.1 to $10.35 billion, up from previous guidance of $9.9 to $10.1 billion. Guidance for normalized EPS is still expected to arrive in the range of $1.63 to $1.73.

Photos courtesy Coleman