Core Insights - Newell Brands Inc. reported an increase in operating income due to improvements in productivity and recent restructuring actions [1] - The company announced potential new initiatives to be implemented in 2025, along with new products in the L&D segment [1] Financial Performance - The increase in operating income indicates a positive trend in the company's financial health, driven by operational efficiencies [1] - The focus on productivity improvements suggests a strategic shift towards enhancing operational capabilities [1] Future Outlook - New initiatives planned for 2025 may signal a forward-looking approach to growth and innovation within the company [1] - The introduction of new products in the L&D segment could diversify the company's offerings and potentially increase market share [1]

Summary of Newell Brands Conference Call Company Overview - Newell Brands is a $7.6 billion company with approximately $900 million in trailing twelve-month EBITDA [4][46] - The company operates 25 brands that account for 90% of sales, with 62% of revenue generated in the US and 38% internationally [4][5] Core Business Segments - Newell's portfolio is divided into three segments: Home and Commercial, Learning and Development, and Outdoor and Recreation [5] - Key brands include Rubbermaid, Graco, Coleman, Sharpie, Papermate, Yankee Candle, and Oster [5] Strategic Initiatives - A new corporate strategy was implemented in February 2023, focusing on capability assessment and operational improvements [6][46] - The strategy aims to enhance consumer understanding, innovation, brand building, and retail expertise [9][10] - Significant changes included a consumer-first global brand management organization and a centralized operating model [11][12] Financial Performance - Gross margins have improved for seven consecutive quarters, reaching 34.4%, a 610 basis point increase [47][48] - The company has seen strong operating cash flow and expects continued value creation [46][47] - Normalized EBITDA growth of over 15% was reported, with a trailing twelve-month EBITDA of $900 million [59] Market Trends and Consumer Insights - Core sales trends have improved, particularly in the Learning and Development segment and international markets, which have shown positive growth for five consecutive quarters [46][47] - The company aims to grow faster than market growth by focusing on innovation and targeting higher-income consumers [66][67] Supply Chain and Operational Efficiency - Newell has reduced its supplier base by approximately 45% since 2020, aiming for further reductions to improve procurement efficiency [51][52] - The global fill rate exceeded 95%, the highest in the company's history, with a significant reduction in customer penalties and shortages [53][54] - The company has invested over $2 billion in capital to automate its 42 manufacturing plants, improving efficiency [42][49] Innovation and Product Development - New product launches include innovations in the Sharpie and Rubbermaid brands, with a focus on higher price point segments [25][34][35] - The company is actively pursuing new market segments, such as wet erase markers and premium candles, to drive growth [27][34] Future Outlook - Newell Brands is positioned for continued growth with a focus on operational excellence, innovation, and market share expansion [46][62] - The company plans to maintain a dividend payout ratio of 30-35% while pursuing high-return internal growth opportunities [61] Additional Insights - The company has resumed purchases from China, particularly in the baby gear sector, while also gaining traction in tariff-advantaged categories [70][71] - Retailers are increasingly shifting towards US manufacturing to mitigate supply chain risks, which Newell is leveraging in its sales strategy [71]

Core Insights - Sharpie continues its Rookie of the Year program, featuring top draft picks Ashton Jeanty and Tetairoa McMillan, who will use Sharpie S-Gel pens for signing their rookie contracts [1][5][8] Company Overview - Sharpie is part of Newell Brands, a leading global consumer goods company with a diverse portfolio of well-known brands [10] - Sharpie has been recognized for its precision and performance in writing instruments since the introduction of its first pen-style permanent marker in 1964 [9] Product Highlights - The Sharpie S-Gel pen is designed with no-smear, no-bleed technology, making it suitable for high-performance needs, particularly for athletes [1][8] - The S-Gel pens are noted for their bold, vibrant ink, which aligns with the qualities of the athletes using them [5][8] Marketing and Brand Positioning - The partnership with Jeanty and McMillan emphasizes Sharpie's commitment to being part of significant moments in the athletes' careers, starting with their contract signings [7][8] - Sharpie's brand management highlights the importance of high-performance tools for high-performing individuals, reinforcing the brand's image in the sports community [7][8]

Newell Brands Inc. (NWL) posted narrower-than-expected loss per share in first-quarter 2025, with sales beating the Zacks Consensus Estimate. Both metrics fell year over year. The company’s normalized loss per share was one cent, narrower than the Zacks Consensus Estimate of a loss of seven cents per share. The company reported break-even earnings in the year-earlier quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Net sales dipped 5.3% year over year to $1.6 billion on lower ...

Core Viewpoint - Newell Brands reported a revenue decline of 5.3% year-over-year for Q1 2025, with a revenue of $1.57 billion, slightly exceeding analyst expectations [1]. Financial Performance - Revenue for the quarter was $1.57 billion, down from the previous year, but above the Zacks Consensus Estimate of $1.55 billion, resulting in a surprise of +1.23% [1]. - Earnings per share (EPS) was reported at -$0.01, an improvement from $0.00 in the same quarter last year, with an EPS surprise of +85.71% against a consensus estimate of -$0.07 [1]. Segment Performance - Home and Commercial Solutions net sales were $812 million, below the estimated $817.89 million, reflecting a year-over-year decline of -9.1% [4]. - Outdoor and Recreation net sales reached $182 million, slightly above the estimated $179.14 million, but still down -9.5% year-over-year [4]. - Learning and Development net sales were $572 million, exceeding the estimated $547.41 million, marking a year-over-year increase of +2.3% [4]. Operating Income - Normalized Operating Income for Home and Commercial Solutions was $20 million, below the average estimate of $34.78 million [4]. - Corporate Normalized Operating Loss was reported at -$52 million, better than the estimated -$62.76 million [4]. - Normalized Operating Income for Learning & Development was $103 million, closely matching the estimate of $103.44 million [4]. Stock Performance - Newell Brands' shares have declined -16.3% over the past month, contrasting with the Zacks S&P 500 composite's slight decline of -0.2% [3]. - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3].

Financial Performance - Net sales for Q1 2025 decreased by 5.3% to $1,566 million compared to $1,653 million in Q1 2024, impacted by soft global demand and net distribution losses [106]. - Gross profit remained flat at $503 million, with gross margin improving to 32.1% from 30.5% in the prior year, driven by productivity and pricing actions [108]. - Operating income increased by 31.3% to $21 million in Q1 2025, up from $16 million in Q1 2024, reflecting benefits from restructuring actions and lower related charges [111]. - Interest expense rose by 2.9% to $72 million due to higher interest rates, with the weighted average interest rate increasing to approximately 6.0% [112]. - The income tax benefit for Q1 2025 was $18 million, compared to $51 million in Q1 2024, with an effective tax rate of 32.7% [113]. Strategic Initiatives - The company is focused on returning to profitable top-line growth through product innovation and international market penetration [99]. - The turnaround plan initiated in 2023 aims to improve top-line growth, expand margins, and enhance cash flow [94]. - The company is addressing global challenges such as shifting consumer preferences and macroeconomic volatility while executing its strategic priorities for 2025 [96]. - The Realignment Plan is designed to strengthen front-end commercial capabilities and unlock operational efficiencies [97]. Sales Performance by Segment - Home and Commercial Solutions net sales decreased by 9.1% to $812 million for the three months ended March 31, 2025, compared to $893 million in the prior year, impacted by soft demand and distribution losses [115]. - Learning and Development net sales increased by 2.3% to $572 million, driven by growth in the Baby business, while the Writing business faced a decline due to soft demand [117]. - Outdoor and Recreation net sales decreased by 9.5% to $182 million, with a 19% decline in the U.S. market, although international markets improved by approximately 11% [119]. - The Company reported an operating loss of $2 million for Home and Commercial Solutions, a decrease from an operating income of $16 million in the prior year, primarily due to lower gross profit [116]. Cash and Liquidity - The Company had cash and cash equivalents of approximately $233 million as of March 31, 2025, with $185 million held by non-U.S. subsidiaries [123]. - Cash used in operating activities was $(213) million for the three months ended March 31, 2025, a decrease of $245 million compared to the prior year [124]. - The Company plans to refinance its $1.2 billion senior notes maturing on April 1, 2026, to increase liquidity, although there are no assurances that favorable terms will be available [121]. - Moody's downgraded the Company's senior unsecured debt rating to "B1," resulting in an expected increase in interest expense of approximately $6 million annually [130]. - The Company maintains a $1.0 billion senior secured revolving credit facility with $870 million of availability based on pledged collateral as of March 31, 2025 [128]. - The Company was in compliance with all of its debt covenants as of March 31, 2025 [131].

Newell Brands (NWL) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of a loss of $0.07. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 85.71%. A quarter ago, it was expected that this consumer products company would post earnings of $0.14 per share when it actually produced earnings of $0.16, delivering a surprise of 14.29%.Over the last four quarters, ...

Newell Brands (NWL) Q1 2025 Earnings Call April 30, 2025 09:00 AM ET Company Participants Joanne Freiberger - VP - IRChris Peterson - CEO & PresidentMark Erceg - Chief Financial OfficerLauren Lieberman - Managing DirectorBill Chappell - Managing DirectorFilippo Falorni - Director - Equity ResearchOlivia Tong - Managing Director Conference Call Participants Andrea Teixeira - AnalystSteve Powers - Equity Research AnalystBrian McNamara - MD & Senior Analyst - Consumer Operator Good morning and welcome to the N ...

Newell Brands (NWL) Q1 2025 Earnings Call April 30, 2025 09:00 AM ET Speaker0 Good morning and welcome to the Noel Brands First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in listen only mode. After a brief discussion by management, we will open the call up for questions. In order to stay within the time scheduled for the call, please limit yourself to one question during the Q and A session. Today's conference call is being recorded. A live webcast of this call i ...

Newell Brands Announces First Quarter 2025 Results Year-Over-Year Sales Growth Improved Sequentially Strong Gross Margin Expansion Versus Prior Year Affirms Net Sales, Operating Margin and EPS Outlook for Full Year 2025 ATLANTA, GA – April 30, 2025 – Newell Brands (NASDAQ: NWL) today announced its first quarter 2025 financial results. Chris Peterson, Newell Brands President and Chief Executive Officer, said, "We had strong results in the first quarter with core sales growth, operating margin and earnings pe ...