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, ...

Financial Data and Key Metrics Changes - The company reported a core sales decline of 2.1%, which was at the high end of the guidance range, reflecting new product innovation and some pricing benefits [27][32] - Normalized gross margin increased by 150 basis points to 32.5%, marking the seventh consecutive quarter of year-over-year improvement [28][34] - Normalized operating margin was 4.5%, exceeding the guidance range despite increased advertising and promotion investments [34] - The company recorded a normalized diluted earnings per share loss of $0.01, which was $0.05 to $0.08 above the guidance range [35] Business Line Data and Key Metrics Changes - The Learning and Development segment and the International business, which represent nearly 40% of total sales, posted positive core sales growth for the last five consecutive quarters [28][33] - The first quarter net sales included about 2.5 points of currency headwind and just over half a point from category exits [28][33] Market Data and Key Metrics Changes - The company maintained its net sales guidance for the year but moderated expectations for category growth from flat to down 1% to 2% due to lower consumer confidence levels [17][44] - The foreign exchange outlook improved by one to two percentage points based on current rates [19] Company Strategy and Development Direction - The company is focused on product innovation and has rebuilt its multiyear innovation funnel, with new products set to launch in the second half of the year [7][8] - The company believes it is well-positioned to benefit from global trade realignment due to proactive sourcing strategies and investments in domestic manufacturing [9][10] - The company plans to reduce dependency on sourced finished goods from China, aiming to lower this to 10% by the end of 2025 [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic operating environment and emphasized the importance of their domestic manufacturing capabilities [26][45] - The company expects to fully offset the impact of certain tariffs through proactive actions and has affirmed its 2025 financial outlook for net sales, normalized operating margin, and normalized earnings per share [41][45] - Management acknowledged the challenges posed by the additional 125% China tariff but indicated that they have plans to mitigate its impact [46] Other Important Information - The company has made significant investments in U.S. manufacturing, totaling nearly $2 billion since the 2017 Tax Cuts and Jobs Act, which has enhanced its competitive position [13][14] - The company has a strong pipeline of new products and is actively engaging with retailers to shift their sourcing from China to U.S. or Mexican manufacturing [66] Q&A Session Summary Question: Retail destocking and tariff mitigation efforts - Management noted that they have not seen significant changes in retailer inventory levels in Q1 and are adjusting their core sales guidance out of caution due to macroeconomic forecasts [52][53] - They have taken proactive actions to mitigate the impact of tariffs, particularly in the baby gear category, which is their biggest exposure [54][56] Question: Leveraging U.S. capacity and private label considerations - Management clarified that they are not set up to produce private label products but are encouraging retailers to replace private label items with their branded products, leveraging U.S. manufacturing advantages [63][66] Question: Guidance and market growth expectations - Management explained that while forecasting market growth is challenging, they believe providing guidance is important for clarity and that they have a plan to offset tariff impacts [86][89]

Financial Data and Key Metrics Changes - The company reported a core sales decline of 2.1%, which was at the high end of the guidance range, reflecting new product innovation and some pricing benefits [26][32] - Normalized gross margin increased by 150 basis points to 32.5%, marking the seventh consecutive quarter of year-over-year improvement [27][32] - Normalized operating margin was 4.5%, exceeding the guidance range despite increased advertising and promotion investments [32][33] - The company recorded a normalized diluted earnings per share loss of $0.01, which was $0.05 to $0.08 above the guidance range [33] Business Line Data and Key Metrics Changes - The Learning and Development segment and the International business, which represent nearly 40% of total sales, posted positive core sales growth for five consecutive quarters [26][32] - The first quarter net sales included about 2.5 points of currency headwind and just over half a point from category exits [27][32] Market Data and Key Metrics Changes - Over 60% of total sales were in the United States, with significant investments made in U.S. manufacturing, totaling nearly $2 billion since the 2017 Tax Cuts and Jobs Act [12][13] - The company plans to reduce U.S. sourced finished goods from China to 10% by the end of 2025 [11] Company Strategy and Development Direction - The company is focused on product innovation and has rebuilt its multiyear innovation funnel, with new products set to launch in the second half of the year [7][25] - The strategy includes leveraging U.S. manufacturing capabilities to mitigate tariff impacts and capitalize on competitive advantages [14][25] - The company is actively pursuing sales opportunities in categories where it has domestic production exempt from tariffs [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic operating environment and emphasized the potential for long-term gains despite short-term challenges [25][44] - The company is maintaining its net sales guidance for the year but moderating expectations for category growth from flat to down 1% to 2% due to lower consumer confidence [16][41] - Management highlighted that the number of categories with domestic production significantly exceeds those that are disadvantaged by tariffs [25][86] Other Important Information - The company has paused virtually all outstanding Chinese purchase orders in response to the new tariffs and is focusing on alternative sourcing solutions [22][23] - A significant portion of the baby gear business is exposed to tariffs, with management actively working on mitigation strategies [55][56] Q&A Session Summary Question: Retail destocking and tariff mitigation efforts - Management noted that core sales growth was at the high end of guidance and that they have not seen significant changes in retailer inventory levels in Q1 [50][52] - They have taken proactive actions to mitigate tariffs, particularly in the baby gear category, which is their most exposed segment [53][54] Question: Leveraging U.S. manufacturing capacity - Management clarified that they are not set up for private label production but are encouraging retailers to replace private label products with their branded products [63][64] Question: Guidance and market growth expectations - Management acknowledged the challenges in forecasting market growth but emphasized that the majority of their business is not significantly impacted by tariffs [84][86] Question: Sensitivity of China tariffs and impacts - The majority of the tariff impact is concentrated in the baby gear category, which is primarily sourced from China [93]

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 ...

Investor Presentation Q1 2025 FORWARD LOOKING STATEMENTS This presentation and the accompanying remarks contain non-GAAP measures. An explanation of most directly comparable GAAP measures are contained in the Appendix. © Newell Brands 2 • the Company's ability to optimize costs and cash flow and mitigate the impact of soft global demand and retailer inventory rebalancing through discretionary and overhead spend management, advertising and promotion expense optimization, demand forecast and supply plan adjus ...

Core Viewpoint - Newell Brands Inc. (NWL) is anticipated to report a year-over-year decline in both revenue and earnings for Q1 2025, with revenues expected at $1.55 billion, reflecting a 6.4% decrease from the previous year [1] Financial Performance - The consensus estimate for the bottom line indicates a loss of seven cents per share, a decline from break-even earnings in the same quarter last year [2] - In the last reported quarter, NWL's earnings exceeded the Zacks Consensus Estimate by 14.3%, with an average earnings beat of 46.4% over the trailing four quarters [2] Factors Impacting Results - The company faces challenges from a tough macroeconomic environment, including high core inflation, which has likely led to reduced demand for discretionary and durable products [4] - Additional headwinds include foreign currency translations, adverse impacts from business exits, shifting consumer preferences, and geopolitical volatility [5] - Management projected a net sales decline of 5-8% and core sales drop of 2-4% for Q1 2025, with a normalized operating margin expected to be between 2-4%, down from 4.8% in the prior year [6] Segment Performance - The Outdoor & Recreation segment is projected to experience a significant sales drop of 12.2% [7] Positive Aspects - On a positive note, NWL's front-end commercial capabilities, including innovation and business development, along with a streamlined organizational structure, may provide some support to performance [8] - Pricing strategies in international markets to counter inflation and currency fluctuations are also expected to help cushion the company's performance [8] Valuation - From a valuation perspective, NWL is trading at a forward 12-month price-to-earnings ratio of 7.39x, which is below its five-year high of 16.88x and the industry average of 20.94x, indicating attractive investment opportunities [10] - Over the past six months, NWL's shares have declined by 40.2%, contrasting with a 0.4% growth in the industry [11]

Newell Brands Inc. (NASDAQ: NWL ) is going to report the company’s Q1 results on the 30 th of April. The household product manufacturer has continued its significant 2023 turnaround plan after a weak financial performance, earlierI am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers ...

Company Overview - WoodWick® Candles is a leader in home fragrance and part of the Newell Brands portfolio, known for its luxurious candle offerings since 2006 [5][7] - The company focuses on combining refined designs with nature-inspired fragrances, utilizing patented Pluswick® technology for a unique sensory experience [5][6] Product Launch - WoodWick® has introduced the Precious Metals Collection, a new line of candles inspired by Earth's rarest elements, featuring a metallic aesthetic and rich, multi-layered scents [1][2] - The collection includes eight fragrances, each reflecting the essence of precious metals such as gold, silver, and bronze, designed in elegant hourglass jars [4][5] Fragrance Details - The fragrances in the Precious Metals Collection include: - Sparkling Pomelo: Pink pepper, juicy lychee, and sparkling aldehydes [5] - Marine Amber: Blue sea salt, cedarwood, and pearl crystals [5] - Volcanic Orris: Pear, orris, and sandalwood [5] - Shimmering Spice: Saffron, bronzed leather, and smoked woods [5] - Rosa D'Oro: Damask rose, warm oud, and ambery labdanum [5] - Candescent Coast: Marine notes, white teak, and moss [5] - Melanite Mist: Aldehydes and rain on rock moss [5] - Cypress Ore: Lavender and blonde woods [5] Availability - The Precious Metals Collection is available for purchase at WoodWick.com and Yankee Candle stores for $24.99, with Amazon availability expected in late 2025 [4]

Core Viewpoint - Newell Brands Inc. (NWL) has experienced a significant stock decline of 36% over the past three months, contrasting with the industry's growth of 1.1% and the broader Zacks Consumer Staples sector's return of 3.6% [1] Stock Performance - NWL stock closed at $6.58, nearing its 52-week low of $5.39, and is trading below its 50- and 200-day moving averages, indicating potential weakness in momentum [3] Financial Challenges - Newell is facing multiple headwinds affecting its financial performance, including inflationary pressures that have led to muted demand for discretionary and durable products. The company anticipates continued challenges in 2025, particularly for lower-income consumers [4] - The Outdoor & Recreation segment, the smallest in terms of revenue and profitability, saw a 7.9% year-over-year decline in net sales in Q4 2024, with core sales dropping 3.7%. Significant core sales growth is not expected until 2026 [5] - The company has lowered its fiscal 2025 sales guidance to a decline of 2-4% year-over-year, with net sales for Q1 2025 expected to decline by 5-8% and core sales anticipated to drop by 2-4% [6] Earnings Estimates - The Zacks Consensus Estimate for Newell's earnings per share has been revised downward, with estimates for 2025 and 2026 decreased by a penny to 72 cents and 85 cents per share, respectively [7] Strategic Initiatives - Newell is focusing on innovation, brand building, and improving sales in profitable markets. The company has introduced a new operating method aimed at enhancing efficiency and adaptability [10][11] - The organizational realignment is designed to strengthen commercial capabilities, enhance consumer insights, and improve brand communication, which is expected to drive operational efficiencies and reduce complexity [12] - In 2025, Newell aims to improve profit margins, reduce debt, enhance cash flow, and invest in restructuring projects to boost long-term efficiency [13] Conclusion - Newell Brands is currently facing significant challenges, with stock performance declining and trading below key moving averages. However, strategic initiatives may support long-term recovery [14]

Operating Segments - The Company has three primary operating segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation[21]. - The Home and Commercial Solutions segment includes brands such as Ball, Calphalon, and Rubbermaid, focusing on household products and commercial cleaning solutions[23]. - The Learning and Development segment offers writing instruments and baby gear, primarily under brands like Dymo and Graco[25]. - The Outdoor and Recreation segment markets active lifestyle products under brands such as Coleman and Contigo[27]. Financial Performance - The Company’s largest customer, Amazon, accounted for approximately 15% of net sales in 2024, while Walmart accounted for about 14%[41]. - Approximately $1.0 billion of the Company's debt carries a variable interest rate, with a hypothetical 1% increase in these rates potentially increasing interest expense by about $10 million[291]. - Approximately 38% of the Company's sales in 2024 were denominated in foreign currencies, with the European Euro at 9%, British Pound at 5%, and Canadian Dollar and Mexican Peso at 4% each[292]. Workforce and Operations - The Company employs approximately 23,700 people worldwide, with a significant portion in manufacturing and supply chain roles[46]. - The Company implemented a new operating model in 2023 to drive simplification and unlock efficiencies across its segments[22]. Innovation and Market Challenges - The Company continues to invest in research and development to create innovative products that meet consumer needs[45]. - The Company faces competitive pressures from large retailers and must continuously innovate to maintain market share[39]. Risk Management - The Company did not enter into any commodity-based derivatives during 2024 and 2023, indicating a strategy to monitor commodity price risks without active hedging[293]. - The Company is exposed to credit loss from counterparties to its derivative financial instruments, but does not anticipate non-performance due to the high ratings of these institutions[294].