Newell Brands, known for consumer products like Yankee Candle and Sharpie pens, faces a decline in Q2 sales as consumers cut back on spending. Despite beating earnings expectations, the company experienced a 13% drop in sales. The CFO expects ongoing...
Troy D. Hanson
July 29, 2023
Newell Brands, the maker of popular consumer products such as Yankee Candle and Sharpie pens, has reported a decline in second-quarter sales. As consumers tighten their spending across various categories including kitchen gadgets, candles, and camping gear, the company's profits took a hit.
In Q2, Newell Brands posted a profit of $18 million, or 4 cents per share. This marks a significant decrease from the $199 million, or 48 cents per share, that was reported in the same period last year. When excluding one-time items, the company's earnings reached 24 cents per share, surpassing the 13 cents per share expected by analysts.
However, despite beating earnings expectations, Newell Brands experienced a 13% decline in sales. The company's sales amounted to $2.2 billion, surpassing analysts' expectations of $2.15 billion. The drop in sales can be attributed to consumers' ongoing struggle with elevated levels of core inflation and the resumption of student loan repayments.
Newell Brands' Chief Financial Officer, Mark Erceg, expects that both top- and bottom-line pressure will persist. To address this challenge, the company plans to reinvest in its business, which may impact near-term earnings. Meanwhile, Chief Executive Chris Peterson is focusing on the company's top 10 countries and top 25 brands, which collectively account for approximately 90% of sales.