What factors drove the changes in ACCO Brands's revenue and profit?

What were the key takeaways from ACCO Brands's earnings call?

What is the revenue and EPS growth rate for ACCO Brands year over year?

What guidance did ACCO Brands's management provide for the next earnings period?

What is ACCO Brands's gross profit margin?

What does ACCO Brands do and what are its main business segments?

What were the key takeaways from ACCO Brands’s earnings call?

What is ACCO Brands's latest dividend and current dividend yield?

- **Cost Savings Progress**: $50 million achieved toward $100 million target, improving gross margin to 33%.
- **Q4 Growth Drivers**: Technology accessories (Kensington pipeline, Switch 2 accessories) and delayed price realization expected to drive sales recovery.
- **Trade-Down Impact**: Global consumer trade-down trends impacting top line, but ACCO's broad portfolio mitigates cannibalization risk.
- **Brazil Recovery**: Soft start to back-to-school season, but improving trends observed with expanded product offering.
- **Financial Outlook**: Full-year adjusted EPS of $0.83-$0.90, with free cash flow of $90-$100 million.

**【Management Opening Remarks】**
Chris McGinnis provided an overview of the call, emphasizing the company's adjusted results and non-GAAP financial measures. He highlighted the importance of forward-looking statements and the risks associated with them.

**【CEO Summary Section】**
- **Third Quarter Results**: Sales were below outlook due to softer global demand and delayed tariff-related price increases. However, adjusted EPS met expectations, and gross margins improved by 50 basis points.
- **Cost Reduction Program**: Achieved $10 million in savings, bringing cumulative total to $50 million, with $100 million target by year-end.
- **Segment Performance**: 
  - **Americas**: Back-to-school sales in line with expectations, but Latin America underperformed due to trade-down trends.
  - **International**: Europe was soft, but Australia and Asia showed growth.
  - **Technology Accessories**: Kensington sales declined but expected to recover in Q4 with new product launches.
- **Fourth Quarter Outlook**: Confidence in improvement driven by delayed price realization, new product launches (e.g., Nintendo Switch 2 accessories), and timing of shipments.

**【CFO Financial Commentary】**
- **Financial Highlights**: 
  - Reported sales decreased 9% (8% excluding FX), with gross margin improving to 33%.
  - Adjusted operating income of $39 million, down from $45 million YoY due to lower volumes.
  - Free cash flow of $42 million year-to-date, with $17 million from asset sales.
- **Segment Results**: 
  - **Americas**: Comparable sales down 12%, but margin rate improved due to cost savings.
  - **International**: Comparable sales down 7%, with margin rate declining due to lower volume.
- **Outlook**: Full-year sales expected to decline 7%-8.5%, with adjusted EPS of $0.83-$0.90. Free cash flow projected at $90-$100 million.

**【Q&A Key Highlights】**
- **Fourth Quarter Confidence**: Driven by technology accessories growth (Kensington pipeline, Switch 2 accessories), delayed price realization, and new product launches.
- **Trade-Down Dynamics**: Consumer trading down globally, but ACCO's broad portfolio allows capture of lower-tier sales without significant cannibalization.
- **Brazil Back-to-School**: Sales timing delayed but improving trends observed; cautious optimism due to expanded product offering.
- **Strategic Acquisitions**: Evaluating accretive opportunities in faster-growing categories and geographies, such as ergonomic products and gaming seating.


ACCO Brands Corporation (ACCO) Q3 2025 Earnings Call Transcript

- **Q2 in-line results**: Sales down 10.5% YoY, driven by U.S. tariffs and soft demand, but $40M cost savings from multiyear program offset部分影响.
- **Gaming growth**: Nintendo Switch 2 accessories driving modest Q2 growth, with holiday season expected to be a key contributor.
- **Back-to-school caution**: U.S. and Canada sales expected down mid-single digits, but inventory positioned for potential upside.
- **Margin improvement**: Gross margin expected to stabilize in second half with tariff mitigation, targeting 33-34% long-term.
- **Financial strength**: $100M free cash flow target on track; Brazil tax resolution reduces risk by $13M.
- **Guidance**: Full-year sales -7% to -8.5%, adjusted EPS $0.83-$0.90; Q3 sales -5% to -8%.


**【CEO Summary Section】**
- Q2 sales and adjusted EPS in line with guidance, with comparable sales down 10.5% YoY due to U.S. tariff disruptions and soft demand.
- $100M multiyear cost reduction program achieved $40M cumulative savings, with $8M in Q2.
- Gaming and headcount reductions accessories growth driven by alone from manufacturing optimization Nintendo Switch 2 launch, with PowerA leading third-party accessory sales; back-to-school sales expected down mid- to high single digits in U.S. and Canada.
- Tariff mitigation strategies include strategic price increases, China plus one supply chain diversification, and production shifts to cost-competitive countries.
- New product pipeline expanded with 2x 2025 product introductions vs. 2024, including Thunderbolt 5 docking stations and ergonomic solutions.

**【C Q2 reported sales down 10%, with adjusted EPS in line withFO Financial Commentary】**
- outlook; gross profit $130M (-15% YoY), margin rate 32.9% (-200bps YoY) due to tariff impacts and volume declines.
- Americas segment operating margin 17.4% (-100bps YoY); International segment margin 8.5% (+150bps YoY) from pricing, cost savings, and Buro Seating acquisition benefits.
- Full-year guidance: reported5%, adjusted EPS $0.83-$0.90 sales -7% to -8.; Q3 sales -5% to -8%, adjusted EPS $0.21-$0.24.
- $100M adjusted free cash flow target includes $17M from asset sales; leverage ratio expected 3.8x-3.9x at year-end.
- Brazil tax resolution reduced reserve by $13M, with $7M cash payment over next year.

**【Q&A Key Highlights】**
- Back-to-school sales 10% through season; cautious retailer orders may limit upside, but inventory positioned for replenishment.
- New products (e.g., Switch 2 accessories) to contribute modestly in Q3, with meaningful impact in 2026.
- China competition in Latin America driving price adjustments; maintaining competitive position with localized assortments.
- Gross margin expected to improve in second half with tariff mitigation, targeting 33-34% long-term.
- FX tailwinds to benefit Q3 and Q4 sales, particularly in U.S. dollar weakening markets.
- Cost reduction program on track for $16M+ annualized savings by year-end, with no new initiatives planned.


ACCO Brands Corporation (ACCO) Q2 2025 Earnings Call Transcript

- **Q1 Performance**: Sales in line with outlook, adjusted EPS beat driven by 60bps margin expansion. $7M in cost savings progress toward $40M 2025 target.
- **Tariff Mitigation**: 60% of business tariff-agnostic. U.S. products sourced from China will be negligible by end-2025. 20%+ price increases offset cost inflation.
- **Growth Drivers**: New product launches (Switch 2 accessories) and acquisitions (Australia seating) support long-term 33-34% gross margin target.
- **Q2 Outlook**: Sales down 8-12% due to tariff-related demand uncertainty, but strong balance sheet ($236M liquidity) supports resilience.

**【CEO Opening Remarks】**
- Q1 2025 sales were in line with expectations, with adjusted EPS exceeding outlook due to favorable sales mix and cost management.
- Gross margin expanded by 60 basis points, driven by higher-margin back-to-school products and cost savings from a $100M multiyear cost reduction program.
- $7M in savings achieved in Q1, with $25M realized in 2024, supporting the 2025 target of $40M in savings.
- Tariff response: 60% of business is outside the U.S., with China+1 strategy diversifying supply chains. By end-2025, U.S.-sourced products from China will be negligible.
- New product launches (e.g., Switch 2 accessories) and acquisitions (e.g., Australia/New Zealand ergonomic seating) position for long-term growth.

**【CFO Financial Highlights】**
- Reported sales decreased 12%, with comparable sales down 8% due to global volume declines.
- Gross profit of $100M (-10%) with margin +60bps, reflecting cost savings and favorable mix.
- Adjusted operating income of $7M (-56%) due to volume-driven fixed cost deleverage.
- Free cash flow of $3M, with $236M available under revolver and leverage ratio of 3.65x.
- Q2 2025 outlook: sales down 8-12%, adjusted EPS $0.28-0.32, reflecting tariff-related demand uncertainty.

**【Q&A Key Takeaways】**
- **Tariff Impact**: U.S. business faces 20%+ price increases, but 60% of sales are tariff-agnostic. Inventory pre-buying mitigates short-term costs.
- **Sales Mix**: Q1 benefited from early back-to-school shipments, which will reduce Q2 sales. International segment saw mid-single-digit growth in tech accessories.
- **Acquisition Strategy**: Small, strategic deals (e.g., Australia seating) to expand into growing categories. Long-term focus on M&A, but near-term caution amid tariff uncertainty.
- **Gross Margin Target**: 33-34% by end-2025, supported by cost savings and pricing actions.
- **Supply Chain**: 90-day tariff pause allows time to transition production out of China. Vietnam and Americas manufacturing will replace China for U.S. products.

ACCO Brands (ACCO)-2 May 25-2025 Q1 Earnings call transcript

- **Cost Efficiency Boost**: Expanded cost savings to $100M by 2026, with $25M delivered in 2024, driving 30bps margin improvement. 
- **Gaming Expansion Success**: 2024 Japan expansion and new product launches offset Nintendo Switch headwinds in Q1 2025. 
- **Balanced Growth Strategy**: Combining M&A (low-risk adjacencies) with organic innovation (sustainable tech, ergonomics) to counter 1-5% sales decline in 2025. 
- **Financial Strength**: $132M free cash flow in 2024, net debt down 12%, and 3.4x leverage ratio (target 2.0-2.5x). 
- **Tariff Resilience**: Diversified supply chain mitigates China import risks, with customer price adjustments underway.

**【CEO Opening Remarks】**
- **2024 Performance Highlights**: Full-year free cash flow of $132 million, net debt reduction of $94 million, and balance sheet improvement through credit facility refinancing. 
- **Cost Optimization**: Expanded cost savings program to $100 million by 2026 (vs. $60 million initial target), with $25 million realized in 2024. Focus on footprint rationalization, manufacturing efficiency, and SG&A reductions. 
- **Growth Initiatives**: 
  - **Adjacent Categories**: Success in ergonomics and gaming (e.g., Japan expansion), with 2024 gaming sales growth driven by new products and international expansion. 
  - **M&A Strategy**: Actively pursuing accretive, low-risk acquisitions to leverage optimized cost structure and create scale. 
  - **Innovation**: 100th anniversary of Swingline staplers, sustainable tech products, and Beyond Console gaming accessories launch. 
- **2025 Outlook**: Comparable sales decline of 1-5% (low to mid-single digits), with improving trends through the year. Tariff mitigation efforts underway, including supply chain diversification. 

**【CFO Financial Review】**
- **Q4 2024 Results**: 
  - Reported sales down 8% (6% ex-FX), driven by Brazil weakness and lower office product volumes. 
  - Adjusted operating margin improved 30bps to 12.4%, supported by $30 million SG&A savings. 
  - Free cash flow of $132 million vs. $115 million in 2023, driven by inventory reduction and Brazil receivables collections. 
- **2025 Guidance**: 
  - Comparable sales: -1% to -5% (FX headwinds of 4% in Q1 tapering to 2% by year-end). 
  - Adjusted EPS: $1.00-$1.05 (vs. $1.15 in 2024). 
  - Free cash flow: $105-$115 million (normalized from 2024's Brazil-driven spike). 
  - Gross margin expansion expected, offset by inflationary SG&A pressures. 
- **Capital Allocation**: 
  - $15M share buybacks in 2024, with plans to balance debt reduction, dividends, and M&A. 
  - Consolidated leverage ratio target: 2.0-2.5x (current: 3.4x). 

**【Q&A Key Takeaways】**
1. **Cost Savings Cadence**: 
   - 2025: $40M savings (split 50/50 between COGS and SG&A). 
   - 2026: Remaining $35M to reach $100M total. 
2. **M&A Strategy**: 
   - Focus on adjacencies (e.g., gaming, ergonomics) with quick payback and minimal leverage impact. 
   - No immediate plans to exceed 3.0x leverage ratio. 
3. **Brazil Market**: 
   - 2025 back-to-school trends modestly improving, but pricing pressure remains. 
   - Teams analyzing 2024 sell-out data to adjust 2026 strategy. 
4. **Tariff Mitigation**: 
   - Diversified supply chain (minimal China dependency). 
   - Price increases communicated to customers for 2025 impact. 
5. **Gaming Growth**: 
   - Japan expansion in Q4 2024, but Nintendo Switch transition may cause Q1 2025 softness. 
   - Longer-term focus on new product development and international expansion.

ACCO

ACCO fundamentals

Earnings Call

You can ask Aime