Newell Brands Inc
F:NWL
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Newell Brands Inc
Newell Brands Inc., with its roots reaching back to the early 20th century, has grown into a global consumer goods powerhouse known for its diverse portfolio of household names. Originally founded as a manufacturer of curtain rods, Newell transformed itself through strategic acquisitions into a conglomerate that manages a wide array of consumer goods. This evolution culminated in a significant merger with Jarden Corporation in 2016, expanding its reach and product offerings. Today, Newell operates through several key segments, including writing instruments, home appliances, outdoor solutions, and baby products. The company houses iconic brands such as Rubbermaid, Sharpie, and Coleman, aligned under these business units.
Newell Brands excels by leveraging brand recognition and a broad distribution network to make its mark in global markets. The company garners revenue primarily by manufacturing, marketing, and selling a vast array of everyday items that are often essentials in households. Their products move through various channels, from big-box retailers and department stores to e-commerce platforms, reaching consumers where it matters most. Focused on innovation and consumer insights, Newell reinvests in product development and brand enhancement to maintain competitiveness. By balancing its brand-heavy portfolio with consumer trends and retail partners, Newell Brands positions itself to capture market share even in fluctuating economic conditions, continuously generating streams of revenue from a comprehensive range of consumer needs.
Newell Brands Inc., with its roots reaching back to the early 20th century, has grown into a global consumer goods powerhouse known for its diverse portfolio of household names. Originally founded as a manufacturer of curtain rods, Newell transformed itself through strategic acquisitions into a conglomerate that manages a wide array of consumer goods. This evolution culminated in a significant merger with Jarden Corporation in 2016, expanding its reach and product offerings. Today, Newell operates through several key segments, including writing instruments, home appliances, outdoor solutions, and baby products. The company houses iconic brands such as Rubbermaid, Sharpie, and Coleman, aligned under these business units.
Newell Brands excels by leveraging brand recognition and a broad distribution network to make its mark in global markets. The company garners revenue primarily by manufacturing, marketing, and selling a vast array of everyday items that are often essentials in households. Their products move through various channels, from big-box retailers and department stores to e-commerce platforms, reaching consumers where it matters most. Focused on innovation and consumer insights, Newell reinvests in product development and brand enhancement to maintain competitiveness. By balancing its brand-heavy portfolio with consumer trends and retail partners, Newell Brands positions itself to capture market share even in fluctuating economic conditions, continuously generating streams of revenue from a comprehensive range of consumer needs.
Sales Decline: Net sales fell 7.2% and core sales dropped 7.4% in Q3, missing expectations due to retailer inventory reductions, international market slowdowns, and pricing missteps.
Tariff Impact: Newell now expects $180 million in incremental cash tariff costs for 2025, up from $155 million previously, significantly pressuring margins and cash flow.
Earnings & Margins: EPS of $0.17 was in line with guidance and slightly ahead of last year, despite a $0.11 per share tariff expense. Normalized gross margin fell 90bps to 34.5%, and normalized operating margin decreased 60bps to 8.9%.
Guidance Cut: Full year revenue, margin, and cash flow guidance were lowered, including net sales now expected to decline 5% to 4.5%, and operating cash flow guided down to $250-300 million.
Q4 Outlook: Q4 net sales expected to decline 4% to 1%; core sales down 5% to 3%. Profitability expected to improve sequentially, with normalized operating margin seen at 9% to 9.5% and EPS at $0.16 to $0.20.
Innovation Pipeline: Management highlighted a robust 2026 innovation lineup with over 20 significant product launches planned, expected to drive distribution gains and return to growth.
Retailer Inventory & International: Retail inventory destocking and international weakness (notably Brazil and Argentina) were described as transitory, with both expected to recover in Q4.
Restructuring Progress: Overhead costs, leverage ratios, and brand investment improved, reflecting structural progress despite current headwinds.
