Newell Brands Grows Housewares Sales In Q2

Second quarter net sales at Newell Brands were up mid-single digits as the company reported growth across its U.S businesses as well as double digit growth in global e-commerce sales.

For the three month period ended June 30, net sales increased 5.1% to $4.1 billion. Company officials said the inclusion of the Jarden business for the full quarter versus only 11 weeks in the prior year period, and the acquisitions of Sistema and WoodWick, partially offset by the divestitures of the tools, décor, Fire Starter and Fire Log, Teutonia and Cordage businesses. Core sales grew 2.5%.

Newell Brands reported net income of $223 million compared with $135 million in the prior year. Reported diluted earnings per share were $0.46 compared with $0.30 in the prior year. Normalized net income was $422 million, or $0.87 per share, compared with $349 million, or $0.78 per share, in the prior year.

The company’s Live segment, which includes several housewares categories, generated net sales of $1.3 billion, and an increase of 13.8% over the previous year. Pro forma core sales growth of 0.2% was driven by growth from the baby, appliances and home fragrance businesses, partially offset by softness in cookware and fresh preserving. Reported operating income was $96.2 million compared with $2.5 million in the prior year.

In addition, the company also raised full year 2017 net sales guidance to $14.8 billion to $15 billion, representing 11.5% to 13% year over year growth, from the previous range of $14.52 to $14.72 billion, to reflect the timing of divestitures and the impact of foreign currency. The company also reaffirmed full year 2017 guidance for core sales growth of 2.5% to 4% and normalized diluted earnings per share of $3.00 to $3.20.