Newell Brands' Highlights: Q4 Earnings Beat, Management Overhaul, Sluggish Outlook & More - Newell Brands

Newell Brands Inc (NASDAQ:NWL) reported a fourth-quarter FY22 sales decline of 18.5% year-on-year to $2.29 billion, beating the consensus of $2.23 billion.
Gross margin for the quarter contracted 350 basis points to 26.3%, and the gross profit decreased 28.3% to $600 million.
Operating loss for the quarter totaled $(273) million compared to an income of $170 million last year.
The company held $287 million in cash and equivalents as of Dec. 31, 2022.
Adjusted EPS of $0.16 beat the analyst consensus of $0.11.
"The business continued to be impacted by a tough operating environment, including slowing consumer demand for general merchandise categories, as well as inventory reductions at retail," said CEO Ravi Saligram.
Management Change: Newell Brands announced a series of steps to refresh its Board of Directors and leadership.
Newell Brands has appointed Chris Peterson, currently President, to serve as its President and CEO, effective upon the conclusion of the company's 2023 Annual Meeting of Stockholders on May 16, 2023. The Board will also nominate Peterson for election to the Board.
Ravi Saligram will retire as CEO and as a member of the Board, effective the same date.
Patrick Campbell, who has served as the Chairman of the Board for five years, will transition from his position as Chairman while remaining a director nominated for re-election at the Annual Meeting.
The Board has designated independent director Robert Steele, serving NWL Board since April 2018, as its next Chairman of the Board.
Newell Brands will nominate Gary Hu for election to the Board, pursuant to the Director Appointment and Nomination Agreement with Carl C. Icahn.
Outlook: Newell sees FY23 normalized EPS of $0.95 - $1.08, against the consensus of $1.42.
It sees FY23 sales of $8.4 billion - $8.6 billion against the consensus of $9.08 billion.
Newell expects Q1 normalized EPS of $(0.06) - $(0.03) against an estimate of $0.23. Sales of $1.79 billion - $1.84 billion versus the Street view of $2.04 billion.
Also Read: Newell Brands Unveils 'Project Phoenix' Savings Initiative; Cuts 13% Of Office Positions & Consolidates Segments
Price Action: NWL shares traded lower by 2.98% at $14.16 on the last check Friday.
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NWLNewell Brands Inc

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