Newell Brands Shares Plummet on Sales Decline; CEO Optimistic for 2025

Newell Brands Inc. (NWL) shares took a nosedive on Friday, February 7, 2025, following the company's fourth-quarter and full-year 2024 financial results. The global consumer goods company reported a 6.1% decline in net sales to $1.9 billion, with core sales declining by 3.0% compared to the prior year period. Despite the disappointing sales performance, Newell Brands' CEO, Chris Peterson, remains optimistic about the company's prospects for 2025.

The company's gross margin improved to 34.6% compared to 31.1% in the prior year period, reflecting the sixth consecutive quarter of year-over-year improvement. However, the operating margin remained relatively flat at 7.1% compared to 6.4% in the prior year period. Newell Brands also reported a net loss of $54 million, compared to a net loss of $86 million in the prior year period.



Newell Brands' CEO, Chris Peterson, expressed confidence in the company's ability to return to sustainable top-line growth, continue driving operating margin improvement, and strengthen its balance sheet. The company expects core sales growth to positively inflect during the back half of 2025, as operational scale and efficiency across its plant and distribution system become more apparent.

Mark Erceg, Newell Brands' Chief Financial Officer, highlighted the company's successful debt refinancing, which was six times oversubscribed, as a testament to the progress made since the adoption of the new corporate strategy six quarters ago. The company believes that the strong support for its offering reflects the considerable work done to improve its top-line performance, strengthen its balance sheet, and fundamentally transform its structural economics.

In conclusion, Newell Brands' shares plummeted on Friday following a disappointing sales performance in the fourth quarter. However, the company's CEO remains optimistic about its prospects for 2025, citing operational improvements and a successful debt refinancing as reasons for confidence. Investors should closely monitor Newell Brands' progress as it works to return to sustainable top-line growth and strengthen its balance sheet.