By Claudia Assis
Newell saw 'significantly greater than expected' pullback in retailer orders
Newell Brands Inc. stock fell more than 4% in the extended session Tuesday after the consumer-products company cut its outlook for 2022 and the current quarter, saying retailers ordered fewer of its products and inflation continues to pressure its customers.
Newell (NWL), maker of Rubbermaid containers, Sharpie pens, and Graco baby products, among several other well-known brands, now expects a sales decline for the year.
"Although we remain enthusiastic about the back-to-school season and continue to see solid growth in the commercial business, we have experienced a significantly greater-than-expected pullback in retailer orders and continued inflationary pressures on the consumer," Chief Executive Ravi Saligram said in a statement.
Saligram vowed to cut costs further and adjust its supplies: "I am confident that our team can effectively navigate through the softer macroeconomic environment and address the near-term hurdles."
Newell called for 2022 sales between $9.37 billion and $9.58 billion, compared with a previous expectation of sales between $9.76 billion and $9.98 billion.
Earnings for the year were seen between $1.56 a share and $1.70 a share, compared with an earlier forecast of EPS between $1.79 and $1.86.
For the third quarter, the company trimmed its sales outlook to between $2.21 billion and $2.32 billion, compared with a previous range between $2.39 billion and $2.50 billion, and EPS between 46 cents and 51 cents.
Analysts polled by FactSet expect third-quarter EPS of 52 cents a share on sales of $2.47 billion.
Newell shares have lost 22% so far this year, compared with losses of around 18% for the S&P 500 index .
Several retailers have also dialed down expectations for the year amid higher inventory and more markdowns.
See also:Here's what the big inventory problem for retailers looks like
(END) Dow Jones Newswires
09-07-22 0753ETCopyright (c) 2022 Dow Jones & Company, Inc.