Q4 2023 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$8.45Last close (Feb 8, 2024)
Post-Earnings Price$8.09Open (Feb 9, 2024)
Price Change
$-0.36(-4.26%)
- Newell Brands is launching 8 major innovations (Tier 1 and Tier 2 initiatives) in 2024, compared to zero in 2023, expected to drive top-line growth and improve gross margins; the first, Sharpie Creative Markers, has already started shipping, indicating progress in their innovation pipeline.
- The company has significantly upgraded talent and operational capabilities, which is expected to lead to market share gains in more of their top brands in 2024 and beyond, as the new strategy begins to show results.
- Newell Brands' international business is expected to grow mid-single digits in 2024, contributing positively to overall company performance, due to process simplifications and structural changes made.
- The Outdoor & Recreation segment is facing significant challenges, and its turnaround is expected to take longer and may lag behind other segments, due to deficiencies in innovation, brand building, and retail excellence capabilities. This could negatively impact overall company performance.
- Consumer spending remains under pressure due to inflation, with durable and discretionary categories expected to remain under pressure in 2024. The company's return to growth is heavily dependent on market conditions improving in 2025, which is uncertain, introducing risk into their projections.
- The amendment of the company's credit agreement to include additional covenants suggests potential concerns about financial health or liquidity constraints, indicating a need for additional financial flexibility, which could impact operations and investor confidence.