By Denny Jacob
Newell Brands expects to largely thrive in an environment with higher tariffs but does see levies at higher levels denting results if they're in place for the year.
Chief Executive Chris Peterson said the company's domestic manufacturing base positions "us well to not just manage tariff related sourcing dislocations, but to ultimately benefit from them."
Chief Financial Officer Mark Erceg said efforts including targeted pricing action give Newell confidence it can fully offset the U.S. tariffs and foreign retaliatory tariffs currently in place, other than the additional 125% U.S. tariffs on China, all while maintaining its original 2025 guidance ranges for sales, operating margin and earnings per-share.
Erceg said an analysis found that if the additional 125% tariff on China remains in effect for the full year, its adjusted earnings per-share in 2025 could be negatively impacted by as much as 10 cents after the implementation of additional mitigation efforts.
For the second quarter, Newell forecast both sales and core sales to decline between 3% and 5%, while adjusted earnings per-share are expected to be between 21 cents and 24 cents.
For 2025, Newell now expects core sales to decline between 1% and 3%. The company previously guided for core sales to be between a gain of 1% to a decline of 2%.
The maker of Yankee Candle and Sharpie pens widened its loss to $37 million, or 9 cents a share, from $9 million, or 7 cents a share, in the prior-year period.
Stripping out certain one-time items, earnings came in at 1 cent a share. Analysts polled by FactSet expected a loss of 6 cents a share.
Sales declined to $1.57 billion from $1.65 billion. Analysts polled by FactSet expected $1.54 billion.
Newell said the topline decline reflects a core sales decline of 2.1%, unfavorable foreign exchange and business exits.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
Newell Brands's loss in the first quarter of 2024 was 2 cents per share. "Newell Brands Says Tariffs Can Benefit Business, While Certain Levies May Dent 2025 Results" at 7:34 a.m. ET misstated the first-quarter 2024 loss as 7 cents per share.
(END) Dow Jones Newswires
April 30, 2025 11:47 ET (15:47 GMT)
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