Newell Brands Inc. ( (NWL) ) has released its Q1 earnings. Here is a breakdown of the information Newell Brands Inc. presented to its investors.
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Newell Brands Inc. is a prominent global consumer goods company, known for its diverse portfolio of well-known brands such as Rubbermaid, Sharpie, and Yankee Candle, operating primarily in the consumer goods sector with a focus on enhancing everyday consumer experiences.
In its first quarter of 2025, Newell Brands reported a sequential improvement in year-over-year sales growth, alongside a notable expansion in gross margin compared to the previous year. The company has reaffirmed its full-year outlook for net sales, operating margin, and earnings per share (EPS), signaling confidence in its strategic direction.
Key financial metrics for the quarter include net sales of $1.6 billion, marking a 5.3% decline from the previous year, with core sales down by 2.1%. Despite these declines, the company achieved a reported gross margin increase to 32.1% from 30.5% a year ago. The normalized gross margin also saw an increase to 32.5%. However, the company reported a net loss of $37 million, up from a $9 million loss in the prior year, with a normalized net loss of $6 million.
Strategically, Newell Brands has focused on maintaining a strong domestic manufacturing base, which it believes positions the company well against tariff-related challenges. The company has implemented targeted pricing actions and cost reduction efforts to offset the impact of tariffs, although the additional 125% U.S. tariffs on China could potentially impact normalized EPS by up to $0.10 if they remain in effect throughout the year.
Looking ahead, Newell Brands remains committed to its strategic initiatives aimed at improving business fundamentals and is optimistic about managing the challenges posed by the current economic environment. The company has widened its full-year operating cash flow outlook to account for higher tariff costs, demonstrating a proactive approach to navigating external pressures.