Newell Brands Inc.’s reported anemic organic sales growth of 0.5 percent at the former Jarden Outdoor Solutions segment in the second quarter, with growth in Pure Fishing largely offset by weather-related declines at winter-sensitive businesses such as K2 Sports, Volkl and Marker.
Net sales at the segment, which spans more than 50 sporting goods brands ranging from Coleman and Rawlings to Marmot and Shakespeare, were $953.4 million, up 53.6 percent compared with the prior year, due largely to Jarden Corp.’s acquisition of Jostens.
Reported operating income at Outdoor Solutions was $55.4 million, reflecting the contribution of Jostens, partially offset by inventory step-up and integration and other costs related to Newell Brand’s acquisition of Jarden in April. Reported operating margin was 5.8 percent of sales.
Normalized operating income, which excludes restructuring charges and other non-recurring items and currency effects, was $215.7 million, or 22.6 percent of sales, with good Jostens performance in the seasonally important second quarter contributing to segment margins.
Newell Brands is widely expected to sell the Outdoor Solutions segment’s winter sports brands as part of its announced plans to divest product lines with annual sales of $250 million to $300 million over the next two to three years.
