Newell Brands shares fall 3% as revenue misses expectations in a challenging market

Published 01/08/2025, 11:26
 Newell Brands shares fall 3% as revenue misses expectations in a challenging market

ATLANTA - On Friday, Newell Brands Inc. (NASDAQ:NWL) reported second-quarter earnings that met Wall Street expectations while revenue fell short as the consumer goods company continues to navigate a challenging macroeconomic environment.

The company’s shares were down 3.21% in pre-market trading following the results.

The maker of Rubbermaid, Sharpie and Coleman products reported adjusted earnings per share of $0.24, matching analyst estimates, while revenue came in at $1.94 billion, slightly below the consensus estimate of $1.95 billion. Revenue declined 4.8% compared to the same quarter last year, with core sales falling 4.4%.

"As part of our journey to become a world-class consumer products company, we took another important step forward by delivering net sales, core sales, normalized operating margin and normalized EPS all within the guidance ranges we provided last quarter," said Chris Peterson, Newell Brands President and Chief Executive Officer.

Despite the revenue shortfall, Newell Brands achieved its eighth consecutive quarter of gross margin expansion of at least 100 basis points, reaching 35.4%, which the company noted is its highest level in four years. Normalized gross margin increased to 35.6% compared with 34.8% in the prior year period.

The company’s Home & Commercial Solutions segment, which includes brands like Rubbermaid and Yankee Candle, saw the steepest decline with net sales falling 7.3% to $892 million. The Outdoor & Recreation segment declined 9.3% to $234 million, while Learning & Development, which includes Sharpie and Paper Mate, held relatively steady with a 0.5% decrease to $809 million.

"In a challenging macroeconomic environment, our team has demonstrated tremendous agility and our strategy gives us confidence that we are on the right track to continue to improve our rate of core sales growth, drive margin improvement and generate strong cash flow," Peterson added.

For the full year 2025, Newell Brands updated its outlook, now expecting net sales to decline 2% to 3% and adjusted earnings per share between $0.66 and $0.70. The company also noted that its full-year guidance includes an estimated incremental cash tariff cost of approximately $155 million compared to 2024.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.