In the second quarter of the group's financial year, ended June 30, sales declined by 2.1 percent on a comparable basis in Newell Brands' Play segment, which comprises the brands formerly included in the Outdoor Solutions division of Jarden Corp. except for Marker, Völkl and other winter sports brands.
The winters sports brands were sold to Kohlberg & Company on July 18 for $240 million in a package that included a factory in China. The group has booked impairment charges of $66.2 million for the quarter, saying they were primarily related to goodwill and intangible assists in the winter sports business that was going to be divested.
The Play segment is now divided into Outdoor & Recreation, Fishing and Team Sports. The Outdoor & Recreation division includes Coleman, Campingaz, Marmot, Contigo and Bubba. Fishing consists of Abu Garcia, Berkley, Shakespeare, Penn and Ugly Stik. Rawlings is the main brand in the Team Sports division.
Commenting on the latest quarter, Newell said that a decline in Fishing, impacted by inventory destocking and the bankruptcy of Gander Mountain in the U.S., more than offset solid growth in beverages, coolers and Team Sports.
On a reported basis, Newell's Play segment increased its sales by 14.2 percent to $782 million, and its operating margin improved to 11.4 percent from 0.3 percent in the year-ago period, when it was affected by an inventory step-up related to the merger with Jarden. Excluding non-recurring items, the normalized operating margin declined to 13.1 percent from 14.4 percent.