Tariffs And Soft Demand Hit Paper Mate Maker Newell Brands, Stock Tumbles

Newell Brands Inc. NWL shares traded lower on Friday after reporting its second-quarter earnings report. Some of the notable brands from this global consumer company include Rubbermaid, Sharpie, Graco, Coleman, Yankee Candle, Paper Mate, FoodSaver, and Dymo.

The Paper Mate maker reported an adjusted earnings per share of 24 cents, in line with the analyst consensus.

Quarterly sales of $1.935 billion (down 4.8% year over year) missed the analyst consensus estimate of $1.947 billion.

Core sales declined 4.4% year-over-year, reflecting softer underlying demand.

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Segment Performance

The Home & Commercial Solutions segment reported net sales of $892 million, down from $962 million last year.

Learning & Development segment sales were $809 million versus $813 million, reflecting a 0.5% core sales decline. Outdoor & Recreation segment sales fell to $234 million from $258 million year-over-year.

The gross margin improved to 35.4% from 34.4%, with the normalized gross margin rising to 35.6%. Operating margin also strengthened to 8.8% versus 8.0% a year ago, while normalized operating margin edged up to 10.7% from 10.6%.

Normalized EBITDA came in at $280 million, slightly down from $282 million a year earlier. The company raised $1.25 billion via 8.50% senior unsecured notes due 2028, bolstering its liquidity position.

Outlook

Newell Brands now expects third-quarter adjusted EPS of 16 to 19 cents, below the 26-cent consensus.

Its full-year 2025 adjusted EPS guidance was lowered to 66 to 70 cents from 70 to 76 cents, citing higher tariff-related inventory costs.

Full-year operating cash flow is now projected between $400 million and $450 million.

Price Action: NWL shares are trading lower by 16.40% to $4.69 at last check Friday.

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