Palantir to report; Trump on Nvidia chip exports - what’s moving markets
NEW YORK - On Friday, Newell Brands Inc. (NASDAQ:NWL) reported third-quarter results that missed analyst expectations, as significant trade disruptions and reduced retail inventory levels weighed on sales performance.
The consumer goods company’s shares fell 4.03% in pre-market trading after the results.
The maker of Rubbermaid, Sharpie, and Coleman products posted adjusted earnings per share of $0.17, slightly below the analyst consensus of $0.18. Revenue came in at $1.8 billion, falling short of the $1.88 billion estimate and representing a 7.2% decline compared to the same period last year. Core sales declined 7.4% YoY.
"Our turnaround continues to advance, even as Newell and the broader industry navigated significant trade disruptions in the third quarter," said Chris Peterson, Newell Brands President and Chief Executive Officer. The company attributed the sales decline to reduced retail inventory levels, softness in international markets—particularly in Brazil—and moderated demand following tariff-driven pricing actions.
Gross margin decreased to 34.1% from 34.9% in the prior year period, with the company noting that tariff costs negatively impacted margins. Without the temporary $24 million impact of one-time China tariffs, gross margin would have expanded by 55 basis points, according to the company.
The Home & Commercial Solutions segment, which includes brands like Rubbermaid and Yankee Candle, saw the steepest decline with core sales falling 9.8%. The Learning & Development segment, featuring Sharpie and Paper Mate, experienced a 5.6% core sales decline.
Looking ahead, Newell Brands updated its full-year 2025 outlook, now expecting net sales to decline between 4.5% and 5.0%, with normalized EPS projected to be between $0.56 and $0.60. For the fourth quarter, the company forecasts net sales to decline between 1.0% and 4.0%.
"We are confident that our decisive actions are paving the way for the company to return to sustainable top-line growth in the future," Peterson added.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.