Newell Brands reported a 3.3% year-over-year net sales increase for its third quarter while noting the results in the prior-year period reflect meaningful shifts in consumer demand from the COVID-19 pandemic, with comparability impacted by elevated prior-year results in its Home Appliances and Home Solutions business units.
Newell said it recorded net sales in its third quarter of $2.8 billion. Core sales grew 3.2% compared with the prior-year period according to Newell.
Reported operating margin was 10.1% percent compared with 13.4% in the prior-year period. This reflected significant impact of inflation and an increase in advertising and promotion expense, which offset benefits from lower overhead costs, fuel productivity savings, business mix and pricing, according to Newell.
Newell’s reported diluted earnings per share were $0.44 compared with $0.71 per share in the prior-year period.
Newell’s Home Appliances segment generated net sales in the third quarter of $443 million compared with $430 million in the prior-year period. The gain reflected core sales growth of 1.9% and the impact of favorable foreign exchange. Reported operating income from the segment was $19 million compared with reported operating income of $19 million in the prior-year period.
The Home Solutions segment generated net sales of $598 million compared with $623 million in the prior-year period, reflecting a core sales decline of 3.6%. Net sales from the group, including food-related housewares and home fragrance products, exceeded the 2019 level for the comparable period, Newell reported. Core sales decline in the food business unit more than offset core sales growth in the home fragrance business unit. Reported operating income from the group was $75 million compared with reported operating income of $123 million in the prior-year period.
“We continued to execute very well throughout the third quarter and our results reflect the effectiveness of our strategy, as well as the resilience and agility of our operating model,” said Ravi Saligram, Newell Brands president and CEO. “Strong consumer demand, supported by innovation, fueled core sales growth of 3.2 percent, at the high-end of our evergreen target, on top of a difficult year-ago comparison of 7.2%. While we are taking action to address the significant inflationary pressures and supply chain bottlenecks, we are also advancing our strategic priorities, by continuing to reduce complexity, capitalizing on the international opportunity, and building operational excellence throughout the organization. I am confident the company has a long runway for value creation, as we position it for sustainable and profitable growth while building competitive advantage.”