Newell Brands Inc. third quarter 2017 net sales declined seven per cent to $3.7 billion versus Q3 2016. The company revised its 2017 full year outlook for net sales of $14.7 billion to $14.8 billion, core sales growth of 1.5 to two per cent and full year normalized diluted earnings per share of $2.80 to $2.85.
“Newell Brands’ third quarter results were below expectations as our transformation progress was overshadowed by weak late-quarter sales related to retailer inventory rebalancing, primarily in response to decelerating U.S. market growth through the back-to-school period,” says Michael Polk, Newell Brands chief executive officer.
“While markets across a number of categories were weaker than expected, we delivered solid point-of-sale growth of 3.5 per cent and share improvement of 65 basis points in the U.S., driven by good results in the mass channel and strong double-digit growth in e-commerce. We continued to realize cost synergies as planned, with an incremental $86 million in the quarter. While those benefits, coupled with a lower than normal tax rate, were partially offset by weaker than expected sales, cost inflation and the absence of about $50 million of pre-tax earnings associated with divestitures, we still delivered double-digit earnings per share growth for the quarter.”
“Despite challenging marketplace conditions, we are on a path to achieve our transformation objectives,” continues Polk. “Our market share increases, point of sale growth, innovation and e-commerce development, and cost savings delivery have enabled competitive year-to-date results, strengthening our confidence in the transformative value creation opportunity inherent in Newell Brands. That confidence is shared by our board, which has approved a $1 billion share repurchase authorization through 2020. This program will enable increased flexibility to allocate capital to our most attractive strategic options as part of our ongoing commitment to create value for our shareholders.”