Higher sales for Pure Fishing were more than offset by a sales decline at Coleman during the third quarter, leading Newell Brands to report a 3.2 percent drop on a comparable basis for Jarden Corporation's former Outdoor Solutions segment, excluding the snow sports brands held for sales. Furthermore, Marmot Mountain had to deal with the consequences of last year's warm weather.
Adding Jostens, which was acquired last November, segment sales were up by 12.1 percent, despite a negative currency impact of 5.5 percent. The segment generated an operating loss of $18.7 million due to a build-up of inventories and various costs related to its integration into the group, the establishment of two new design hubs and the development of a new global e-commerce division. On a normalized basis, excluding extra charges, the Outdoor Solutions segment reached an operating margin of 11.4 percent on revenues of $731.9 million.
The company confirmed the list of brands and operations that it is trying to sell: K2 skis and inline skates, Marker, Völkl, Dalbello, 51/50, Morrow, Ride, Line skis, Full Tilt ski boots, Atlas, Powderidge, Tubbs, Madshus, Backcountry Access, Squadra and Zoot.
The acquisition of Jarden led to a sales increase of 159 percent to $3.95 billion for the entire Newell group in the quarter, but the gross and operating margins of the group declined to 39.1 percent and 8.2 percent, respectively. On a normalized basis, the operating margin would have risen to 15.4 percent. Net earnings rose by 39 percent to $186.5 million.
Meanwhile, K2 Sports decided to make “a statement about its health and longevity” by announcing many new appointments, including some promotions within its existing staff. In particular, Valerie Long was named marketing manager for K2 skis and skates, after working for more than 20 years in marketing communications on the agency and client side.
She will work with a former K2 manager, Dan Mayers, and with Adam Harkness, who joined the company in September in the new function of digital and social media strategist. Another company veteran, Alex Draper, has been elevated to the rank of global vice president of marketing, responsible also for product line management. Hunter Waldron, who has worked for K2 for 18 years, has been made global brand director of K2 skis, snowboards and skates