Core Insights - Newell Brands Inc. (NWL) is facing a challenging operating environment characterized by high tariffs, weak discretionary demand, and currency volatility, which have negatively impacted sales and earnings in 2025. The management believes that innovation is essential for reigniting growth [1][4] Group 1: Innovation and Product Development - Innovation is gaining traction in Newell's core categories, particularly in the Baby segment with successful product launches like Graco's smart car seats, which have outperformed the overall portfolio [2] - The Writing segment is also benefiting from brand-led innovation, with Sharpie and EXPO expanding into new formats and colors, contributing to market share gains and pricing power [2] - Newell is increasing brand investment alongside innovation, with advertising spending reaching its highest level as a percentage of sales in nearly a decade, indicating a commitment to long-term brand equity [3] Group 2: Brand Strategy and Market Positioning - The Home Fragrance segment has undergone a comprehensive restage of the Yankee Candle brand, featuring upgraded formulations and a 360-degree marketing campaign, aimed at improving consumer engagement despite short-term disruptions [3] - While innovation is crucial, it may not fully offset the negative impacts of tariffs and macroeconomic challenges in the near term, as elevated tariff costs continue to pressure margins [4] Group 3: Financial Performance and Valuation - Newell's shares have declined by 22.3% over the past three months, underperforming both the industry and the broader Consumer Staples sector [5] - The company currently trades at a forward 12-month P/E ratio of 6.76X, significantly lower than the industry average of 17.65X and the sector average of 16.08X, indicating a modest discount relative to peers [9]

Core Viewpoint - Newell Brands Inc. (NASDAQ:NWL) is recognized as one of the best penny stocks to buy, with a Buy rating and a price target of $7 from Canaccord Genuity following investor meetings with management [1][2]. Management Confidence and Strategy - The management team, including CEO Christopher Peterson and CFO Mark Erceg, expressed confidence in the company's turnaround strategy, which has been in progress for approximately two and a half years [2]. - Canaccord Genuity anticipates that 2026 will mark the first year of net distribution gains for Newell Brands since its acquisition of Jarden, indicating potential positive outcomes from the turnaround efforts [4]. Workforce and Cost-Saving Measures - Newell Brands announced a workforce reduction of about 10% of its professional and clerical employees and plans to close around 20 Yankee Candle stores in the US and Canada [3]. - The company expects these productivity measures to yield annualized pre-tax cost savings of approximately $110 million to $130 million once fully implemented [3]. Mixed Analyst Perspectives - UBS has lowered its price target for Newell Brands from $5.50 to $4.00, suggesting that investors may adopt a cautious "wait and see" approach until clearer evidence of improved performance emerges [5].

Core Insights - Newell Brands Inc. (NWL) is implementing a global productivity plan aimed at enhancing operational efficiency, profitability, and long-term competitiveness through disciplined execution of productivity, simplification, and innovation initiatives [1][9] Workforce Reduction - The company plans to reduce its global workforce by over 900 employees, which constitutes nearly 10% of its professional and clerical staff, with limited impact on manufacturing or supply-chain functions [2] - Professional and clerical separations in the United States are expected to occur within the current month, with similar efforts continuing internationally through 2026, subject to local laws [2] Productivity Plan Details - The productivity plan is designed to elevate performance standards, streamline processes, optimize overheads, and redirect resources to high-value operations, leveraging automation, digitization, and Artificial Intelligence [3][7] - Newell will close approximately 20 Yankee Candle stores in the U.S. and Canada, representing about 1% of brand sales, to align with modern shopping patterns and enhance its multi-channel growth strategy [4] Financial Implications - Management anticipates pre-tax restructuring and related charges of approximately $75-$90 million, primarily for severance costs, most of which will be recognized by the end of 2026 [5] - Once fully executed, the productivity plan is expected to generate annualized pre-tax cost savings of $110-$130 million [5] Sales Guidance - Newell has reaffirmed its guidance for fourth-quarter 2025 normalized operating margin, earnings per share, and operating cash flow, while expecting net and core sales to be at the lower end of the previously issued guidance range due to slower-than-anticipated sales trends in Latin America [6]

Core Viewpoint - Newell Brands is implementing significant restructuring measures, including job cuts and store closures, in response to economic challenges and declining sales [1][7]. Group 1: Job Cuts and Restructuring - The company will cut 900 jobs, representing 3.8% of its global workforce, and expects to incur restructuring charges of up to $90 million [1][3]. - The job cuts will affect approximately 10% of Newell's global professional and clerical employees, with a total workforce of about 23,700 as of December 31, 2024 [4]. Group 2: Store Closures - Newell will close around 20 Yankee Candle stores in the US and Canada, which collectively account for roughly 1% of brand sales of scented candles, by January next year [1][3]. Group 3: Financial Impact and Projections - The restructuring is anticipated to yield annualized cost savings of approximately $110 million to $130 million [4][6]. - The company now expects a decline in fourth-quarter net sales to be at the upper end of its previous forecast range of 1% to 4%, with slower-than-expected sales recovery in Latin America [6]. Group 4: Market Performance - Newell has experienced a significant decline in its stock value, with shares down 63% this year, although they rose more than 3% on the day of the announcement [7][8].

This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Dive Brief: Newell Brands, which runs Yankee Candle, Rubbermaid, Elmer’s and other names, will lay off 900 people, about 10% of its global professional and clerical staff. U.S. cuts begin this month and those abroad will continue through next year, the company said Monday. In January the company will close about 20 Yankee Candle stores in the U.S. and Canada, which ...

Group 1: Dividend Declaration - Newell Brands Inc. declared a quarterly cash dividend of $0.07 per share, payable on December 15, 2025, to common stockholders of record at the close of trading on November 28, 2025 [1] Group 2: Company Overview - Newell Brands is a leading global consumer goods company with a strong portfolio of well-known brands including Rubbermaid, Sharpie, Graco, Coleman, and Yankee Candle [2] Group 3: Financial Results - Newell Brands announced its third quarter 2025 financial results, indicating that the company's turnaround continues despite significant trade disruptions faced in the quarter [5][6] Group 4: Community Engagement - Newell Brands awarded $175,000 in local community grants through its Local Impact Grant Program, which is part of the company's commitment to community impact and employee-driven philanthropy [8]

Core Insights - Newell Brands Inc. reported third-quarter results that fell short of expectations, leading to a significant drop in share price by over 31% during intra-day trading [1] Financial Performance - The company reported adjusted earnings of $0.17 per share, slightly below analyst expectations of $0.18 [2] - Revenue decreased by 7.2% year-over-year to $1.8 billion, missing forecasts of $1.88 billion [2] - Core sales declined by 7.4% compared to the previous year [2] Margin Analysis - Gross margin decreased to 34.1% from 34.9%, attributed to higher tariff-related costs [3] - Excluding a one-time $24 million impact from China tariffs, gross margin would have improved by 55 basis points [3] Segment Performance - Home & Commercial Solutions, which includes brands like Rubbermaid and Yankee Candle, experienced a core sales decline of 9.8% [3] - Learning & Development, which includes Sharpie and Paper Mate, reported a 5.6% drop in core sales [3] Future Outlook - The company has lowered its 2025 full-year outlook, now expecting net sales to decline by 4.5% to 5.0% and normalized EPS to be between $0.56 and $0.60 [4] - For the fourth quarter, Newell forecasts a revenue decline of 1% to 4% [4]

Core Insights - Newell Brands has revised its full-year net sales forecast to a decline of 4.5% to 5%, a significant change from the previous estimate of a 2% to 3% decline [1][3] - The company has also lowered its adjusted earnings outlook to 56 cents to 60 cents per share, down from the earlier forecast of 66 cents to 70 cents per share [3] Pricing Strategy and Market Response - Newell Brands implemented price increases across various segments to offset tariffs, but faced resistance from consumers, leading to lower sales [2][4] - Competitors did not follow Newell's pricing strategy, resulting in the company being perceived as uncompetitive in the market [2][4] - The company is now seeing prices starting to rise in the market, which may improve its competitive positioning [5] Consumer Behavior and Sales Performance - There has been a notable pullback in spending from low-income consumers and younger shoppers, impacting overall sales [4] - Third-quarter sales fell by 7.2% to $1.81 billion, which was below Wall Street's expectation of $1.89 billion [5] - Weak international sales, particularly in Brazil, contributed to the decline, as Newell's price hikes were not matched by competitors in those markets [5] Additional Costs - Newell Brands anticipates incurring $180 million in additional tariff costs in 2025, an increase from the previous estimate of $155 million [2]

Financial Data and Key Metrics Changes - The company has seen a significant improvement in core sales growth compared to two and a half years ago, although it is still negative this year, it is less negative than in previous years [5] - Gross margin has increased by almost 600 basis points over the past two years, which is a notable achievement [5] - The net leverage ratio has been reduced, and the balance sheet has improved, contributing to strong cash flow [5] Business Line Data and Key Metrics Changes - The company has established a new operating model focused on global segments managing P&L for brands, which has led to improved core sales growth [4] - The company has ramped up its innovation pipeline, with a significant increase in Tier one and Tier two innovations, leading to improved distribution and market share [32][33] Market Data and Key Metrics Changes - The company expects category growth to decline by about 2% this year, with no catalysts for improvement in the second half [9][10] - The lower-income and middle-income consumers are under pressure, leading to a focus on value, while high-income consumers remain strong [11][12] Company Strategy and Development Direction - The company has implemented a new strategy since June 2023, focusing on capability improvement and a new operating model [3][4] - The company is optimistic about category growth improving next year, driven by a potential decrease in interest rates and positive GDP growth [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing pressure on consumers, particularly those in lower and middle-income brackets, but believes that focusing on value will help navigate the environment [51][52] - There is cautious optimism regarding the macro environment, with expectations for improved category growth next year [13] Other Important Information - The company has created a trade expertise center to manage tariff impacts effectively, reducing reliance on China for sourcing [14][15] - The company has taken proactive measures to mitigate tariff impacts, including price adjustments and overhead cost management [17][18] Q&A Session Summary Question: What drove the change in category growth expectations? - The company reset its guidance to reflect sustained category growth decline due to tariffs and consumer dynamics, with no recent changes observed [10] Question: How is the back-to-school season performing? - The back-to-school season has shown flat category growth, with no significant price increases observed, indicating a stable environment [41][42] Question: What are the expectations for Q4 core sales? - Management expects Q4 to be significantly better than Q3 due to stronger innovation, a one-time inventory reduction impact in Q3, and pronounced tariff advantage selling [50] Question: How does the company view divestitures? - The company does not see divestitures as a path to value creation, believing it can win in its current categories, including Outdoor and Rec [68][70] Question: Will acquisitions be considered in the future? - While near-term acquisitions are unlikely, the company is open to medium-sized acquisitions in the future to create value [73][74]

Financial Data and Key Metrics Changes - The company has seen a significant improvement in core sales growth compared to two and a half years ago, although it remains negative this year, it is less negative than in previous years [5] - Gross margin has increased by almost 600 basis points over the past two years, indicating strong financial performance [5] - The net leverage ratio has been reduced, and the balance sheet has improved, contributing to strong cash flow [5] Business Line Data and Key Metrics Changes - The company has established global segments to manage P&L for brands, focusing on brand management and scaling supply chain operations [4] - The Writing business, a key segment, has shown flat category growth this year compared to last year, which is seen as a positive sign [43] Market Data and Key Metrics Changes - The company expects category growth rates to decline by about 2% this year, with no catalysts for improvement in the second half [9] - Lower-income consumers are under pressure, leading to a demand for more value, while high-income consumers remain strong [10][11] Company Strategy and Development Direction - A new strategy was implemented in June 2023, focusing on capability improvement and a new operating model [4] - The company is optimistic about category growth improving next year, driven by a potential decrease in interest rates and positive GDP growth [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing pressure on consumers, particularly in lower and middle-income brackets, but believes that focusing on value will help navigate the current environment [53] - There is cautious optimism for improved category growth next year, with expectations that the company can outperform the market if it executes well [56] Other Important Information - The company has created a trade expertise center to manage tariff impacts effectively, reducing reliance on Chinese sourcing from 35% to less than 10% [14] - The company has secured $35 million in incremental sales from tariff-advantaged categories, with expectations for further growth next year [21] Q&A Session Summary Question: What drove the change in category growth expectations? - The company reset its guidance to reflect sustained category growth rates of minus 2% for the year, based on first-half performance and lack of consumer catalysts [9] Question: How is the company addressing tariff impacts? - The company has implemented pricing strategies and cost management to offset the $155 million cash impact from tariffs, with pricing fully in place [16][19] Question: What is the outlook for the back-to-school season? - The back-to-school season has shown flat category growth, with no significant price increases observed, indicating a stable market environment [44] Question: What are the expectations for Q4? - Management expects Q4 to be significantly better than Q3 due to stronger innovation, a one-time inventory reduction impact in Q3, and tariff advantages becoming more pronounced [52] Question: How does the company view potential divestitures? - The company does not see a path for divestitures to create value, believing it can win in its current categories, including Outdoor and Rec [72] Question: Will acquisitions be considered in the future? - While near-term acquisitions are unlikely, the company is open to medium-sized acquisitions in the future to create synergies [76] Question: What excites management about the company's future? - Management is excited about the progress made in complexity reduction and the implementation of AI to improve capabilities and drive top-line growth [78]