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Newell Brands cuts annual forecast on slowing demand

Published 07/28/2023, 08:02 AM
Updated 07/28/2023, 08:05 AM
© Reuters. FILE PHOTO: Sharpie markers owned by Newell Brands are seen for sale in a store in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly/File Photo
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(Reuters) - Newell Brands Inc trimmed its full-year net sales and profit forecast on Friday, signaling a slowdown in demand for the Sharpie maker's Rubbermaid food containers and kitchen appliances as consumers grapple with rising prices.

Multiple price increases and high inflation have prompted consumers to become more mindful about spending on non-essential items like sporting goods and bakeware hurting Newell's business.

The company said it now expects full-year 2023 net sales between $8.2 billion and $8.34 billion and profit per share between 80 cents and 90 cents.

Previously, the company had forecasted annual net sales and profit at the low end of $8.4 billion to $8.6 billion and the 95 cents to $1.08 range, respectively.

Shares of the Graco (NYSE:GGG) parent were down about 2% in premarket trading.

© Reuters. FILE PHOTO: Sharpie markers owned by Newell Brands are seen for sale in a store in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly/File Photo

In April, the company said that it expects to take an incremental U.S. pricing action across roughly 30% of its U.S. business largely concentrated in the home and commercial solutions segment in the third quarter.

Excluding items, Newell earned 24 cents per share, beating analysts' average expectation of 14 cents per share, according to IBES data from Refinitiv.

 

 

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