The Home Solutions division of Newell Rubbermaid saw double-digit sales growth in the third quarter driven by recent acquisitions of brands including Contigo.
Company-wide, Newell Rubbermaid officials reported growth of 5.9% growth in core sales with net sales growth of 3.1%. Net sales in the third quarter were $1.53 billion compared with $1.48 billion in the prior year. The company also reported a 39.5% normalized gross margin, a 30 basis point improvement compared to the prior year, and a 15.2% normalized operating margin, a 90 basis point improvement compared to the prior year.
“We delivered another very good quarter with core sales growth of 5.9% driven by strengthened innovation, sustained high investment in our brands and outstanding commercial execution,” said Michael Polk, president and CEO. “All five segments and all four regions grew core sales.”
The company’s third quarter reported operating margin was 12.2% and operating income was $186.6 million, compared with 11.7% and $173.2 million, respectively, in the prior year.
Newell Rubbermaid noted that its Home Solutions business segment’s net sales were $459.4 million, a 10.2% increase compared to the prior year, driven by the positive impact of the Contigo and bubba brand acquisitions and continued strong growth on Rubbermaid Food Storage, partially offset by a negative impact from foreign currency and a negative impact from the planned divestiture of the Décor business.
Home Solutions core sales, which exclude the Décor business, increased 0.8% with Food & Beverage growth largely offset by the planned contraction of the lower margin Rubbermaid Consumer Storage business. In the segment, the company reported that its normalized operating income was $76.5 million versus $64 million in the prior year.