Newell Brands (NWL) shares plummeted 8.56% in pre-market trading on Friday following the release of its disappointing second-quarter 2025 financial results and lowered guidance. The consumer goods company reported weaker-than-expected sales and provided a cautious outlook for the remainder of the year, raising investor concerns about its future performance.

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 $0.35 in the previous year. The company's gross margin improved, expanding by 100 basis points year-over-year to reach its highest rate in four years.

Adding to the pressure on the stock, Newell Brands provided a conservative outlook for the third quarter and full year 2025. The company lowered its full-year normalized EPS guidance to a range of $0.66 to $0.70, down from the previous range of $0.70 to $0.76. For Q3, Newell anticipates net sales to decline between 2% and 4%, with normalized EPS projected at $0.16 to $0.19, which is below analyst expectations. Furthermore, the company highlighted an estimated incremental cash tariff cost of about $155 million compared to 2024, further impacting its financial outlook and raising concerns among investors about the potential impact of trade tensions on the company's performance.