Newell Brands is reporting that its Outdoor & Recreation segment, which includes the Baby Jogger, Campingaz, Coleman, Contigo, Ex Officio and Marmot brands, generated net sales of $175 million compared with $182 million in the prior-year Q1 period, reflecting a core sales decline of 5.7 percent, as well as the impact of favorable foreign exchange.

The operating loss for the segment was $7 million, or negative 4.0 percent of sales, in Q1, compared with $5 million, or negative 2.7 percent of sales, in the prior-year period. Normalized operating loss was $2 million, or negative 1.1 percent of sales, compared with a nominal loss in the prior-year period.

Consolidated Company Results
Net sales were $1.5 billion, a decline of 1.1 percent compared with the prior year period, reflecting a core sales decline of 3.5 percent and favorable foreign exchange. Core sales exceeded the Company’s expectations, driven by stronger-than-expected category performance and consumer demand, along with a net pricing benefit from customer programs reflecting better claims experience and improved deduction management.

“First quarter results came in ahead of plan across all key metrics with all three segments delivering core sales above our expectations, offered Newell Brands President and CEO Chris Peterson. “Higher than expected consumer demand for our products, as evidenced by improving point of sale and share trends, was driven by continued investment in innovation, advertising and promotional support. We also experienced better than expected underlying category dynamics despite the continued existence of a challenging macroeconomic backdrop. We continue to believe that our strategy is working and, importantly, we now expect to return to top-line growth in the second quarter.”

Gross margin was 33.1 percent compared with 32.1 percent in the prior year period, with the positive impact from net pricing and gross productivity more than offsetting headwinds from volume decline, inflation and tariff costs. Normalized gross margin was 33.2 percent compared with 32.5 percent in the prior year period.

Operating income was $34 million compared with $21 million in the prior year period. Operating margin was 2.2 percent compared with 1.3 percent in the prior year period. Normalized operating income was $74 million, or 4.8 percent of sales, compared with $71 million, or 4.5 percent of sales, in the prior year period.

Net interest expense was $84 million compared with $72 million in the prior year period.

Income tax benefit was $28 million compared with $18 million in the prior year period. There was a nominal normalized income tax benefit in the current period, compared with a $2 million provision in the prior year period.

Net loss was $33 million compared with $37 million in the prior year period. Normalized net loss was $21 million compared with $6 million in the prior year period. Normalized EBITDA was $135 million compared with $136 million in the prior year period.

Balance Sheet and Cash Flow
Year-to-date operating cash outflow was $233 million compared with $213 million in the prior year period primarily reflecting higher inventory levels.

At the end of the first quarter of 2026, Newell Brands had debt outstanding of $5.0 billion and cash and cash equivalents of $201 million, compared with $4.9 billion and $233 million, respectively, at the end of the first quarter of 2025.

Outlook
The company initiated its outlook for the second quarter and updated its outlook for the full year 2026. The outlook does not include any refund of the $120 million paid for IEEPA tariffs in 2025.

The company maintained its outlook for full year 2026 operating cash flow range of $350 million to $400 million.

Image courtesy Marmot/Newell Brands