Newell Brands reported a year-over-year decline in first-quarter sales. Despite a 1.1% drop in net sales for the quarter, the company raised its full-year sales forecast, now expecting annual revenue to be flat to up 2%. The improved outlook is partly due to better-than-expected demand for several products, including Yankee Candle and Sharpie markers. Among its ten core brands, six achieved market share growth in the US during the quarter.

CEO Chris Peterson stated, "While the macroeconomic environment remains challenging, the underlying fundamentals across our categories have been stronger than anticipated." The company's stock price increased by 11.5%. As of Thursday's close, the stock had declined 21% over the past 12 months.

Peterson noted on the earnings call that consumer spending fueled by tax refunds largely offset pressure from rising fuel and energy costs. However, due to high resin prices, the company now expects an additional $50 million in commodity and logistics inflation costs compared to previous estimates.

Additionally, a US Supreme Court decision earlier this year to overturn a Trump-era emergency tariff policy benefited Newell. The company indicated that lower tariff costs would offset about half of the raw material price increases, with the remaining costs to be absorbed through efficiency improvements, selective price increases, and optimized promotional strategies.

Newell plans to seek a refund of the $120 million in tariffs paid last year but has not included this potential refund in its financial guidance. The company has been restructuring its business since sales declined last year. In October, it raised prices across multiple business units to counter tariff costs, but competitors did not follow suit, leading to consumer resistance. Spending among lower-income and younger consumers also decreased significantly.

First-quarter net sales fell 1.1% to $1.55 billion, exceeding Wall Street expectations of $1.51 billion. Growth from higher-income consumer segments continued to be offset by weaker demand from lower-income groups.

The company raised its full-year sales growth forecast from a range of down 1% to up 1% to a new range of flat to up 2%. The full-year adjusted earnings per share guidance is now $0.56–$0.60, compared to a previous outlook of $0.54–$0.60.

For the second quarter, the company expects net sales to be flat to up 2%, with adjusted earnings per share of $0.16–$0.19. Analysts had projected second-quarter adjusted earnings per share of $0.25 and full-year earnings of $0.56.

In the first quarter, the company reported a loss of $33 million, or $0.08 per share, compared to a loss of $37 million, or $0.09 per share, in the same period last year. On an adjusted basis, the loss was $0.05 per share, better than the FactSet analyst consensus estimate of a $0.09 per share loss.