Newell Brands (NWL) shares tumbled 6.06% in pre-market trading on Friday following the release of its second-quarter 2025 financial results. The consumer goods company reported disappointing sales figures and provided a cautious outlook for the rest of the year, prompting investor concerns.

For the second quarter, Newell Brands posted net sales of $1.935 billion, missing analyst estimates of $1.947 billion. This represents a 4.8% decline compared to the same period last year, with core sales dropping by 4.4%. Despite the sales shortfall, the company managed to meet earnings expectations with a normalized EPS of $0.24, although this figure is down from $0.36 in the previous year.

Adding to the pressure on the stock, Newell Brands provided a conservative outlook for the third quarter and full year 2025. The company expects Q3 net sales to decline between 2% and 4%, with normalized EPS projected at $0.16 to $0.19. For the full year, Newell anticipates a revenue decline of 2% to 3% and normalized EPS in the range of $0.66 to $0.70, which is at the lower end of analyst expectations. The company also highlighted an estimated incremental cash tariff cost of about $155 million compared to 2024, further impacting its financial outlook. Despite these challenges, Newell Brands reported an improvement in gross margin, which expanded by 100 basis points year-over-year, reaching its highest rate in four years.