Newell Brands Inc (NASDAQ: NWL) reported a third-quarter FY22 sales decline of 19.2% year-on-year to $2.252 billion, marginally beating the consensus of $2.25 billion.
The Commercial Solutions segment sales fell 18.3% Y/Y to $397 million, Home Appliances fell 31.2% to $305 million, Home Solutions declined 14.7% to $510 million, and Learning & Development decreased 13.6% to $751 million.
The gross margin for the quarter contracted 140 basis points to 29%, and the gross profit decreased 23% to $653 million.
The operating margin was 1.6% versus 10.1% last year, and operating income for the quarter was $35 million compared to $281 million last year.
The company held $636 million in cash and equivalents as of September 30, 2022.
Adjusted EPS of $0.53 beat the analyst consensus of $0.46.
"We expect economic uncertainty and external disruptions to persist in the near-term and are staying agile, as we adjust our playbook to this environment, while taking decisive actions to maximize profits and cash," said CEO Ravi Saligram.
Outlook: Newell revised FY22 adjusted EPS guidance to $1.56 - $1.61 from $1.56 - $1.70, against the consensus of $1.61.
It also cut the FY22 sales outlook to $9.35 billion - $9.43 billion from $9.37 billion - $9.58 billion, against the consensus of $9.42 billion.
Newell expects Q4 sales of $2.18 billion - $2.26 billion (consensus $2.25 billion) and adjusted EPS of $0.09 - $0.14 (consensus $0.21).
Price Action: NWL shares traded lower by 2.68% at $15.25 on the last check Friday.
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