Can Newell's Restructuring Efforts Spark a Sustainable Turnaround?

Core Insights - Newell Brands Inc. (NWL) is implementing a multi-year restructuring plan, Project Phoenix, aimed at stabilizing operations and rebuilding profitability through simplification of organizational structures and supply chain streamlining [1] - The company targets annualized savings of $220-$250 million by 2025, with plans to reinvest these resources into growth initiatives such as product innovation and digital expansion [2] - In Q2 2025, despite a 5.8% decline in net sales year over year, Newell achieved a 110-basis-point improvement in adjusted gross margin, attributed to expense control and restructuring savings [3][8] Financial Performance - The company reported a 4.9% decline in core sales, but the margin expansion indicates early signs of progress from Project Phoenix [3] - Management anticipates sequential improvement in core sales in the second half of 2025, supported by fresher assortments and improved execution [5][8] - Newell's shares have decreased by 41.7% year-to-date, underperforming the industry and broader Consumer Staples sector [6] Valuation Metrics - Newell currently trades at a forward 12-month P/E ratio of 8.43X, significantly below the industry average of 19.89X and the S&P 500's average of 23.32X, indicating a premium valuation relative to peers and the broader market [9]