Newell Brands Sees Turnaround in Sight, but Outdoor Segment Continues Shrinking

Newell Brands, the parent company of Marmot, Ex Officio, Stearns, Bubba, Coleman, and Contigo, among others, reported that the company’s Outdoor & Recreation segment generated net sales of $201 million compared with $270 million in the prior-year period, reflecting a core sales decline of 20.3 percent year-over-year and the impact of unfavorable foreign exchange and certain business exits.

The operating loss for the Outdoor & Recreation segment was $18 million, or negative 9.0 percent of sales, compared with an operating loss of $1 million, or negative 0.4 percent of sales, in the prior-year Q1 period.

The segment’s normalized operating loss was $10 million, or negative 5.0 percent of sales, compared with normalized operating income of $13 million, or 4.8 percent of sales, in the prior-year Q1 period.

Consolidated Results

Newell Brands reported consolidated net sales across all segments amounted to $1.7 billion in the first quarter, a decline of 8.4 percent compared with the prior-year Q1 period. Core sales declined 4.7 percent compared with the prior-year period.

Reported consolidated gross margin increased to 30.5 percent of sales in Q1, compared with 26.7 percent in the prior-year Q1 period. Normalized gross margin increased to 31.2 percent compared with 27.1 percent in the prior year period.

Reported consolidated operating margin increased to 1.0 percent of sales in Q1, compared with negative 2.0 percent in the prior-year period. Normalized operating margin increased to 4.6 percent compared with 2.4 percent in the prior-year period.

Reported net loss was $9 million, or a loss of 2 cents per diluted share, in the first quarter, compared with a net loss of $102 million, or a loss of 25 cents per diluted share, in the prior-year Q1 period.

Normalized net loss was $2 million, or 0 cents per diluted share in Q1, compared with a net loss of $26 million, or a loss of 6 cents per diluted share, in the prior-year Q1 period.

Normalized EBITDA increased to $143 million compared with $109 million in the prior year period.

Looking ahead, Newell Brands is affirming its previously reported Full Year 2024 Outlook:

Image courtesy Marmot