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Newell Brands Inc. experienced a dramatic selloff on October 31, 2025, with shares plunging over 31% to close at $3.2552, marking a new all-time low for the consumer products company. The steep decline followed the company’s third-quarter earnings report, which revealed significant revenue misses and a substantially reduced full-year outlook driven by tariff-related cost pressures.
The maker of household brands including Yankee Candle, Sharpie, Coleman, and Rubbermaid cited higher costs and weakened consumer demand as tariffs disrupted pricing strategies and inventory levels across retail channels.
Third-Quarter Results Miss Expectations Amid Tariff Headwinds
Newell Brands reported third-quarter revenue of $1.81 billion, down 7.2% year-over-year and significantly below analyst expectations of $1.89 billion. The company posted adjusted earnings of $0.17 per share, missing the consensus estimate of $0.18, while adjusted EBITDA fell $25 million to $250 million compared to the prior year.
CEO Chris Peterson acknowledged that sales were hurt by “moderated demand following tariff driven pricing actions” as well as reduced retail inventory levels in response to tariffs and softness in international markets, particularly Brazil.
The tariff impact compressed gross margins by at least 55 basis points during the quarter, with the adjusted gross profit margin declining 90 basis points to 34.5%. Operating cash flow was severely affected, falling more than two-thirds to just $103 million due to increased working capital needs to mitigate tariff costs and higher cash bonus payouts.
The company swung to a profit of $21 million, or $0.05 per share, compared to a loss of $198 million in the prior-year period, though this improvement was overshadowed by the top-line miss and margin pressures.
Outlook Slashed As Tariff Costs Mount To $180 Million
Newell Brands dramatically lowered its full-year guidance, now expecting adjusted earnings of $0.56 to $0.60 per share, down from the previous forecast of $0.66 to $0.70 per share and well below the analyst consensus of $0.67. The company also revised its sales outlook downward, now projecting a decline of 4.5% to 5% versus the earlier forecast of down 2% to 3%, translating to expected revenue of $7.20 billion to $7.24 billion against estimates of $7.35 billion.
The Atlanta-based company cited an expected $180 million in incremental tariff costs for 2025, with approximately $115 million, or $0.23 per share, impacting gross profit before mitigating actions.
For the fourth quarter, Newell expects sales to decline 1% to 4% with adjusted earnings of $0.16 to $0.20 per share, significantly below analyst expectations of $0.27 per share. Operating cash flow guidance was also slashed to a range of $250 million to $300 million from the previous $400 million to $450 million due to higher tariff costs on inventory.
Shares fell 13% to $4.10 in premarket trading and continued declining throughout the session, ultimately closing down more than 31%, adding to a year-to-date decline of approximately 65.92% and extending the stock’s losses to over 77% over five years.
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