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.

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