Newell Brands Eyes Low End Of FY23 Outlook Following Mixed Q1 Performance

Newell Brands Inc NWL reported a first-quarter FY23 sales decline of 24.4% year-on-year to $1.805 billion, beating the consensus of $1.79 billion.
Home & Commercial Solutions segment sales decreased 28% Y/Y to $971 million, Learning & Development decreased 13.2% to $564 million and Outdoor & Recreation segment declined 30.4% to $270 million.
The gross margin for the quarter declined 430 basis points Y/Y to 26.7%, and the gross profit decreased 34.9% to $482 million.
The operating loss for the quarter was $(36) million compared to an operating income of $217 million.
The company held $271 million in cash and equivalents as of March 31, 2023.
Adjusted EPS loss of $(0.06) missed the analyst consensus of $(0.03).
In January 2023, the company announced a restructuring and savings initiative, Project Phoenix, which resulted in restructuring charges of $36 million and savings of $18 million during Q1.
Outlook: Newell sees Q2 sales of $2.13 billion - $2.24 billion versus the consensus of $2.20 billion.
NWL expects Q2 Adjusted EPS of $0.10 - $0.18, below the consensus of $0.38.
NWL now expects FY23 results to be towards the low end of its outlook range for sales of $8.4 billion - $8.6 billion (Street view $8.53 billion) and adjusted EPS of $0.95 - $1.08 (consensus $1.03).
Price Action: NWL shares traded higher by 2.69% at $12.20 on the last check Friday.
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