Newell Brands reported revenues at its Outdoor & Recreation segment rose 22.1 percent in the fourth quarter and 14.9 percent for the year. The gains were led by Coleman, Bubba and Contigo.
The Outdoor & Recreation segment also includes Aerobed, Campingaz, Contigo, Marmot, Stearns, and ExOfficio.
In the quarter ended December 31, sales rose 22.1 percent to $304 million from $249 million a year ago.
On a reported basis, the Outdoor & Recreation segment reduced its operating loss to $1 million from $9 million a year ago. On a normalized basis, operating income was $8 million, or 2.6 percent of sales, compared with a normalized operating loss of $5 million, or negative 2.0 percent of sales, in the prior-year period.
On a conference call with analysts, Chris Peterson, CFO and president, business operations, said core sales in the Outdoor and Recreation segment increased 23.9 percent versus last year “on very strong consumption in the quarter and an improving supply chain situation with broad-based strength across all regions.”
The gains came despite the effect of unfavorable foreign exchange. Net sales exceeded the 2019 level.
In the full year, sales in the Outdoor & Recreation segment reached $1,484 million against $1,292 million, a gain of 14.9 percent.
On a reported basis, operating income reached $89 million against a loss of $420 million a year ago. On a normalized basis, operating income increased to $114 million, or 7.7 percent of sales, from $89 million, or 6.9 percent, a year ago.
“In 2021, our Outdoor & Recreation business grew core sales in each quarter, demonstrating momentum and the strength of the turnaround strategy we began 18 months ago,” said Ravi Saligram, Newell Brands president and CEO.
For the full year, core sales at Outdoor & Recreation improved across all regions with strong growth driven by Japan, U.S., Europe, and Latin America. Saligram also said he was “encouraged by the progress in margins” in the Outdoor & Recreation business.
Outdoor & Recreation’s largest brand, Coleman, led the gains with double-digit growth in the year, “showing our lifestyle brand-building focus is working.”
“Strong results” were also seen in its portable beverage category, with both Contigo and Bubba seeing double-digit growth.
Key product innovations in Outdoor & Recreation drove growth for Coleman included the Coleman Peak 1 Butane/Propane Stove, Coleman 1900 30-Can Soft Cooler Tote, Revel Hydration Pack, and a new camping gas grill in Europe.
Said Saligram, “Our global marketing campaign with Coleman, the Outside Is Calling, is resonating well with our outdoor enthusiast consumer as brand sentiment and brand health scores continue to rise and helping us win new distribution for 2022 across various channels, including outdoor specialty.”
In Beverage, the Contigo Streeterville desk mug, introduced in 2021, is the brand’s number one mug in the coffee mug category. Saligram said, “Contigo is restoring its leadership position.”
In the Q&A session, Saligram also called out Outdoor & Recreation’s performance after “really struggling in the past.”
He elaborated, “The team has done a remarkable job of moving forward. Our Coleman brand is back to its iconic days with this lifestyle positioning. And the fact that we grew almost 25 percent in the fourth quarter, which is not the seasonally high business, is terrific. The Contigo and Bubba businesses in Beverage are doing very well.”
Photos courtesy Coleman
