Newell Brands Inc. reported pro-forma core sales in its Play segment, formerly Jarden Outdoor, slipped 1.2 percent. Solid growth on Beverages, Coolers and Team Sports was more than offset by a decline in Fishing related to broad retail inventory destocking across specialty and mass retailers and the negative impact of the Gander Mountain bankruptcy.
On a reported basis, revenues in its Play segment reached $782 million, a gain of 14.2 percent year over year.
Reported operating income in the segment was $89 million compared with $2.2 million in the prior year, largely due to the absence of the negative impact of inventory step-up related to the acquired Jarden businesses in the prior year. Reported operating margin was 11.4 percent of sales, versus 0.3 percent in the prior year.
Excluding non-recurring items, normalized operating income was $103 million versus $98.8 million in the prior year, up 4.3 percent. Normalized operating margin was 13.1 percent of sales, down from 14.4 percent last year, as increased advertising and promotion investment was only partially offset by cost synergies and savings.
The Play segment includes Newell Brands’ Outdoor & Recreation, Fishing and Team Sports divisions. Brands include Coleman, Campingaz, Marmot, Contigo and Bubba in the Outdoor & Recreation category; Abu Garcia, Berkley, Shakespeare, Penn and Ugly Stik in the Fishing category; and Rawlings in the Team Sports category.
The Play segment now excludes the Winter Sports business of Newell Brands Inc., including Völkl, K2, Marker, Dalbelo, Madshus, Line, Full Tilt, Atlas, Tubbs, Ride and BCA. That business was sold to Kohlberg & Company LLC on July 18 for $240 million.
Newell noted that the latest quarter reflects $63.6 million of amortization of acquisition-related intangible assets and $66.2 million of impairment charges primarily associated with goodwill and intangible assets of the Winter Sports business held for sale.
The Play segment also now excludes Zoot and Squadra, which were sold earlier this year in a separate transaction to Zoot Squad Inc., a California corporation founded by members of those brand’s current management team.
Newell Brands’ other brands include Paper Mate, Sharpie, Dymo, EXPO, Parker, Elmer’s, Oster, Sunbeam, FoodSaver, Mr. Coffee, Rubbermaid Commercial Products, Graco, Baby Jogger, NUK, Calphalon, Rubbermaid, Contigo, First Alert, Waddington and Yankee Candle.
Photo courtesy Ugly Stik
