Newell Brands recorded better-than-anticipated results in its first quarter, with all business segments generating core sales higher than the company’s original forecast.
Net loss was $33 million, or eight cents per diluted share, versus a net loss of $37 million, or nine cents per diluted share, in the year-before quarter. Adjusted for one-time events, net loss was $21 million, or five cents per diluted share, compared with $6 million, or one cent per diluted share, in the year-previous period.
A Newell first-quarter analyst consensus estimate from Zacks Investment Research called for a loss of nine cents per adjusted diluted share with revenues at $1.51 billion.
Net sales were $1.55 billion, a 1.1% decline from the prior-year quarter, the company reported. Core sales declined 3.5% year over year. Core sales exceeded Newell’s expectations, though, driven by stronger-than-expected category performance and consumer demand as well as a net pricing benefit from customer programs, Newell pointed out, reflecting better claims experience and improved deduction management.
Operating income was $34 million compared with $21 million in the year-earlier period, while adjusted operating income was $74 million versus $71 million.
The Newell Home & Commercial Solutions segment — including such home and housewares brands as Oster, Mr. Coffee, CrockPot, Rubbermaid, FoodSaver, Calphalon and Yankee Candle (pictured above) — posted net sales of $780 million versus $812 million in the year-past quarter. This reflected a core sales decline of 6.9%, as well as the impact of favorable foreign exchange, the company maintained. Operating loss was $3 million versus $2 million year over year, while adjusted operating income was $18 million versus $20 million.
The Learning & Development segment posted net sales of $594 million versus $572 million in the year-prior quarter, reflecting core sales growth of 2% and the impact of favorable foreign exchange. Operating income was $108 million versus $98 million year over year, while adjusted operating income was $112 million versus $103 million.
The Outdoor & Recreation segment posted net sales of $175 million, down from $182 million in the year-prior quarter, reflecting a core sales decline of 5.7% and the impact of favorable foreign exchange. Operating loss was $7 million versus $5 million year over year, while adjusted operating loss was $2 million versus a nominal loss, the company indicated.
Newell updated its outlook for 2026 with net sales forecast at flat to up 2% from down 1% to up 1% and adjusted EPS at 56 cents to 60 cents, up from 54 cents to 60 cents.
In announcing the financial figures, Chris Peterson, Newell Brands president and CEO, said, “First-quarter results came in ahead of plan across all key metrics with all three segments delivering core sales above our expectations. Higher than expected consumer demand for our products, as evidenced by improving point-of-sale and share trends, was driven by continued investment in innovation, advertising and promotional support. We also experienced better-than-expected underlying category dynamics despite the continued existence of a challenging macroeconomic backdrop. We continue to believe that our strategy is working and, importantly, we now expect to return to top-line growth in the second quarter.”
Mark Erceg, Newell Brands CEO, added, “First-quarter operating margin expanded year-over-year as productivity and pricing actions more than offset cost inflation and lower volume, while improved operating performance, disciplined cost management and a lower effective tax rate drove normalized earnings per share in excess of our going-in expectations. Based on our first quarter over-delivery and projected sales growth over the balance of the year, we are comfortable raising our full year estimates for net sales, core sales and earnings per share.”
