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Newell Brands reports Q2 2025 results, updates FY23 outlook.
ByAinvest
Friday, Aug 1, 2025 6:35 am ET1min read
• Newell Brands reports Q2 2025 results with 8th consecutive quarter of 100+ basis points gross margin expansion. • Achieves highest gross margin rate in four years. • Updates outlook for full year 2025. • Net sales, core sales, normalized operating margin, and normalized EPS within guidance ranges. • Challenging macroeconomic environment, but strategy gives confidence in future growth.
Newell Brands, Inc. (NWL) has announced its second quarter 2025 financial results, marking the eighth consecutive quarter of 100+ basis points gross margin expansion. The company achieved its highest gross margin rate in four years, driven by gross productivity and pricing strategies [1].The company's net sales declined by 4.8% to $1.935 billion, while adjusted earnings reached $101 million, or $0.24 per share, meeting analyst expectations [2]. Despite the sales decline, the company's gross margin expanded to 35.4%, up from 34.4% in the prior year period [3].
Newell Brands also announced an updated outlook for the full year 2025, estimating a net sales decline of 3% to 2% and a normalized EPS of $0.66 to $0.70. The company anticipates a full-year net sales decline of 3% to 2% and a normalized EPS of $0.66 to $0.70 [2].
The company's challenging macroeconomic environment has not deterred its strategy, as it continues to demonstrate agility and confidence in future growth. Newell Brands expects an incremental cash tariff cost of approximately $155 million in 2025, which will impact gross profit by $105 million, or $0.21 per share after tax [3].
The stock recently traded at 8 times the next 12-month earnings, up from a P/E of 7 three months ago [2]. Analysts maintain a "hold" rating on the shares, with a median 12-month price target of $7.00 [2].
References:
[1] https://www.nasdaq.com/articles/newell-brands-inc-q2-sales-decline
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX190B5F:0-consumer-goods-firm-newell-brands-q2-sales-down-4-8/
[3] https://ir.newellbrands.com/news-releases/news-release-details/newell-brands-announces-second-quarter-2025-results
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