Newell Brands, the renowned maker of Yankee Candle and Sharpie pens, has announced a drop in third-quarter sales. This decline can be attributed to consumers cutting back on their spending habits.
During this period, Newell Brands recorded a loss of $218 million, equivalent to 53 cents per share. This marks a significant decrease from the previous year’s profit of $19 million, or 5 cents per share. However, after excluding restructuring charges, amortization, and other one-time items, adjusted earnings stood at 39 cents per share. This exceeded the expectations of analysts surveyed by FactSet, who had predicted earnings of 23 cents per share.
Unfortunately, Newell Brands experienced a 9% decrease in sales, amounting to $2.05 billion. This was below the forecasted $2.12 billion, as estimated by analysts at FactSet. Notably, sales declined across all of the company’s divisions, including Home & Commercial Solutions, Learning & Development, and Outdoor & Recreation.
Gross Margin Improvement
Despite the challenges faced, Newell Brands remains focused on its cost-cutting program. The company’s Chief Financial Officer, Mark Erceg, stated that the gross margin improved during this quarter as the restructuring initiatives continued to take shape.