Key Takeaways Newell launches a global productivity plan to boost competitiveness and long-term value.NWL will cut 900 professional and clerical roles and close about 20 Yankee Candle stores.The plan targets $110-$130 million in annualized savings and keeps guidance unchanged.Newell Brands Inc. (NWL) is enhancing its operational efficiency, profitability and long-term competitiveness through disciplined execution of productivity, simplification and innovation initiatives. The company has unveiled a global p ...

Newell Brands will cut 900 jobs, or 3.8% of its global workforce, and take up to $90 million in restructuring charges, the Sharpie maker said Monday.The company will also close about 20 Yankee Candle stores in the US and Canada, collectively representing roughly 1% of brand sales of the scented candles, by January next year.Consumer goods companies such as Newell have struggled with tariff-related costs as well as weak consumer demand due to inflation and economic uncertainties. 3 The company will also cl ...

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]

Financial Data and Key Metrics Changes - Normalized operating margin increased by 10 basis points year-over-year to 10.7%, with all three business segments showing positive results for the first time since 2022 [6][22] - Normalized gross margin rose by 80 basis points to 35.6%, marking the highest rate in four years and the eighth consecutive quarter of year-over-year expansion [7][22] - Normalized earnings per share (EPS) reached $0.24, at the top end of the guidance range, despite a higher than expected tax rate [8][22] - Core sales for the second quarter decreased by 4.4%, while net sales contracted by 4.8% due to unfavorable foreign exchange and business exits [21][22] Business Line Data and Key Metrics Changes - The international business, accounting for nearly 40% of total sales, achieved positive core sales growth for the sixth consecutive quarter [22] - The Writing and Home Fragrance segments reported growth in core sales, while the Baby business also showed positive trends [22][49] Market Data and Key Metrics Changes - Market growth was estimated to be down in low single digits for 2025, with Newell Brands largely maintaining market share during the first half of the year [9][10] - The company expects subdued market growth as certain consumer cohorts remain under pressure [10] Company Strategy and Development Direction - The company is focused on improving front-end capabilities and has strengthened distribution, innovation, and marketing plans for the second half of the year [10][11] - Newell Brands is positioned to benefit from global tariff-driven trade realignment, leveraging its North American manufacturing capabilities [11][12] - A significant investment in marketing is planned for 2025, with expectations of higher returns on investment due to improved marketing capabilities [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the mid- to long-term trajectory of the U.S. and global economy, while remaining cautious in the short term due to inflation and high interest rates [17][18] - The company updated its core sales guidance to reflect category growth expectations at the low end of the prior range, offset by better foreign exchange [18][27] Other Important Information - The company redeemed $1.25 billion in outstanding bonds, indicating strong investor support for its corporate strategy [24] - ERP harmonization efforts are on track to be completed by 2026, following successful integrations in the second quarter [25] Q&A Session Summary Question: Comments on back-to-school performance and exit rates across categories - Management noted that it is early to assess back-to-school performance but expressed confidence in sell-in and setup heading into the season, with record high fill rates and secured exclusivity on key products [36][38] Question: Core sales moving in the wrong direction despite innovation - Management highlighted sequential progress in core sales growth, with improvements noted in specific segments like Writing and Baby, while acknowledging challenges in broader category growth dynamics [47][48] Question: Drivers of expected core sales improvement in Q4 - Management indicated that tariff distribution wins and significant innovation launches, particularly for Yankee Candle, are expected to drive improvement in Q4 [56][58] Question: Impact of retailer inventory destocking and competitive pricing response - Management observed some impact from inventory destocking due to direct import issues but noted that overall retail inventories remain in good shape [82][83]

Financial Data and Key Metrics Changes - Normalized operating margin increased by 10 basis points year-over-year to 10.7%, with all three business segments showing positive results for the first time since 2022 [6][21] - Normalized gross margin rose by 80 basis points to 35.6%, marking the highest rate in four years and the eighth consecutive quarter of year-over-year expansion [7][21] - Normalized earnings per share (EPS) reached $0.24, at the top end of the guidance range, despite a higher than expected tax rate [7][23] - Core sales for the second quarter decreased by 4.4%, while net sales contracted by 4.8% due to unfavorable foreign exchange and business exits [20][21] - First half core sales for 2025 were down 3.4%, an improvement compared to the previous year [8] Business Line Data and Key Metrics Changes - The international business, accounting for nearly 40% of total sales, achieved positive core sales growth for the sixth consecutive quarter [20] - The Writing and Home Fragrance businesses both experienced core sales growth [21] - The Baby business showed strong core sales growth in the first quarter, with continued positive trends in the second quarter [39] Market Data and Key Metrics Changes - Market growth was estimated to be down in low single digits for 2025, with Newell Brands largely maintaining market share during the first half of the year [8] - The company noted that certain consumer cohorts remain under pressure, impacting overall market growth expectations [9] Company Strategy and Development Direction - The company is focused on improving front-end capabilities and strengthening distribution, innovation, and marketing plans [9] - Newell Brands is positioned to benefit from global tariff-driven trade realignment, with over half of U.S. sales manufactured domestically [10] - A significant investment of nearly $2 billion in the North American production system since 2017 has provided untapped capacity to meet strategic customer needs [10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the mid- to long-term trajectory of the U.S. and global economy, while remaining cautious in the short term due to inflation and high interest rates [15][16] - The company updated its core sales guidance to reflect short-term category softness, while also anticipating better foreign exchange impacts [17] - Management expects sequential top-line progress to resume, driven by distribution gains, innovation launches, and marketing programs [19] Other Important Information - The company fully redeemed $1.25 billion of outstanding bonds, indicating strong investor support for its corporate strategy [24] - Two additional ERP integrations were successfully completed, moving towards a harmonized system by 2026 [25] Q&A Session Summary Question: Can you comment on the back-to-school category performance and exit rates across all categories? - Management indicated it is early to assess consumer off-take for back-to-school, but they feel confident about their setup and sell-in [36][37] Question: With core sales moving in the wrong direction, what is driving that? - Management noted sequential progress in core sales growth, with improvements from previous periods, and emphasized the timing of retailer shipments and category growth dynamics [46][49] Question: What drives the expected material inflection in Q4 core sales? - Management highlighted tariff distribution wins, significant innovation launches, and retailer shelf resets as key drivers for expected improvements in Q4 [57] Question: How is the retailer environment affecting inventory levels and repurchasing? - Management observed some impact from inventory destocking, particularly in direct import business, but overall retail inventories remain in good shape [80][81]