Newell Brands Cuts Full-Year Sales and Earnings Outlook
Newell Brands, the company behind popular brands such as Yankee Candle and Sharpie pens, has revised its full-year sales and earnings forecast, citing several factors that are expected to impact consumer spending.
Sales Outlook
The company now anticipates full-year sales to range between $8.2 billion and $8.34 billion. This is a decrease from the previously stated guidance of $8.4 billion to $8.6 billion, which was reiterated in April.
Earnings Forecast
Newell Brands expects adjusted earnings to be in the range of 80 cents to 90 cents per share. This is lower than the previous guidance of 95 cents to $1.08 per share provided earlier this year.
Factors Affecting Consumer Spending
Chief Financial Officer Mark Erceg highlighted two key factors that are impacting consumer spending: elevated levels of core inflation and the resumption of student loan payments. These challenges are putting pressure on both the company's top and bottom lines.
Additionally, Erceg mentioned that Newell Brands is reinvesting back into the business, which may temporarily lower its earnings in the near term.
Outlook for Adjusted Operating Margin
Despite the challenges faced, the company remains optimistic about its adjusted operating margin. It expects this metric to improve in the second half of the year.
Newell Brands' revisions to its sales and earnings outlook reflect the current economic conditions and their impact on consumer behavior. The company is proactively addressing these challenges while maintaining its commitment to long-term growth and profitability.
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