Newell Brands Inc. reported that sales at its Outdoor Solutions segment increased 12.1 percent on a pro-forma basis in the third quarter, but that nearly all the gains came from the acquisition of Jostens in the fourth quarter of 2015.
Pro forma core sales, which exclude the K2 Sports and the Marker and Volkl winter sports businesses that are held for sale, declined 3.2 percent compared with prior year, with growth at Pure Fishing more than offset by declines at Coleman. Newell Brand Inc. was formed this year by the merger of Jarden Corp. and Newell Rubbermaid Inc. Jarden Corp. included the $2.74-billion-a-year Jarden’s Outdoor Solutions segment, which owns more than 5o sporting goods brands.
The segment had a reported operating loss of $18.7 million, as solid business performance was more than offset by inventory step-up, integration and other costs related to the merger. Reported operating margin was not meaningful due to the operating loss. Normalized operating income was $83.6 million and normalized operating margin was 11.4 percent of sales.
On October 4, Newell Brands said that as the result of a recently completed strategic review of its portfolio it plans to sell about 10 percent of its portfolio, including: its winter sports business, its Heaters, Humidifiers and Fans business within the Consumer Solutions Segment and the Rubbermaid Consumer Storage business within the Home Solutions segment.
Other brands in the Outdoor Solutions segment in its Jarden Group acquisition that are for sale include Marker, Dalbello, Line, Full Tilt and Madshus in the Winter Sports segment as well as Zoot, the triathlon running shoe brand, and Squadra, the designer and manufacturer of custom cycling and triathlon apparel.
Continuing brands in the Outdoor Solutions group include Marmot and Coleman, as well as the Abu Garcia, Berkley and Shakespeare fishing brands and Rawlings baseball, basketball and softball game-related product lines. Other smaller brands in the Outdoor & Recreation segment that are also purportedly keepers include: Campingaz, ExOfficio, Fenwick, Greys, Gulp!, Hardy, Invicta, Jostens, Mitchell, Neff, Penn, Stearns, Stren and Trilene.