Newell Sees ‘Best Days Ahead’ As Sales Rise in 6 of 8 Business Groups

By leveraging the power of dozens of household brands ranging from Rubbermaid to Sharpie to Coleman camping, Sunbeam, Yankee Candle and more, Newell Brands said Friday (Feb. 12) that six of its eight business units and every major region increased core sales last quarter.

The Atlanta-based company said in a statement that its fourth-quarter and full-year results showed its turnaround program was gaining momentum and had laid the foundation for sustainable future profit growth.

“I am excited about Newell’s prospects and feel our best days are ahead as we focus on sustaining top line growth, strengthening our brands through insights and innovation, focus on omni-channel initiatives, expand distribution and begin to unlock international opportunities,” Newell CEO Ravi Saligram said.

In particular, the parent firm of Mr. Coffee and Calphalon cookware was most pleased with its return to core sales growth and operating margin improvement in the second half of the year, made possible by initiatives that reduced complexity, improved productivity, accelerated eCommerce growth and improved customer relationships.

While Newell’s Food, Commercial, and Appliances and Cookware units were strong, the company said its Writing unit, with Sharpie and Paper Mate, was hurt by the pandemic which has shuttered millions of offices and caused countless Americans to shift to working from home.

Cleaning Up

As much as offices and schools have been closed or had to scale back operations, those businesses that remained open have been major buyers of cleaning supplies and related products, a trend that was seen in the nearly 14 percent core sales growth in Newell’s commercial segment.

To that point, the company launched a major online “Back to Clean” campaign based on the simple question, “Is your facility prepared to reopen?”

Demand for Newell’s mop buckets, sanitizers and cleaning carts was strong, as it is a provider of commercial cleaning equipment and products to property managers, hospitals, nursing homes, food service companies, retailers, schools and colleges.

“Though consumer requirements toward hygiene increased quickly in response to the COVID-19 pandemic, experts predict that preferences will not quickly return to ‘normal,’ as over 80% of shoppers indicate that their perception of hygiene practices influences decisions around where they will shop post-COVID,” the website said.

More Time At Home

Whether businesses were trying to reopen or striving to remain open, Newell positioned itself to help them “reassure customers of their commitment to hygiene and a safe shopping experience.”

Likewise, Newell’s Home Solutions segment also saw solid revenue growth last quarter, with  12.4 percent core sales growth, helped in part by people nesting at home more and getting organized.

However, Newell pointed out that those results were crimped in part by its exit from the fundraising business as well as the closure of 77 underperforming Yankee Candle retail locations.

Officially, Newell said it earned $127 million in net income on $2.7 billion in sales in the fourth quarter. Its full year revenues fell 3.4 percent to $9.4 billion.

Going forward, Newell forecast that it expected FY 2021 earnings per share of $1.55 to $1.65, which was slightly less than the average estimate of $1.68 per share from 12 analysts who cover the stock.