Weakness late in the third quarter was cited by Newell Brands officials as a key factor in the decline of company net sales for the three month period ended September 30.
For the third quarter, sales were down 7% to $3.7 billion, with core sales up 0.4%. Net income for the quarter was $234.4 million, up from $186.5 million in the comparable quarter the prior year. Diluted earnings per share were $0.48 compared with $0.38 in the prior year.
“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,” said Michael Polk, Newell Brands CEO.
In the company’s Live segment, which includes housewares, net sales were $1.48 billion, up 2.3% from the prior year. Core sales growth of 0.6% was driven by growth in the baby and food businesses. This offset weak results in appliances and cookware as the result of market share softness and retailer inventory rebalancing in the U.S., company officials said.
Newell Brands also updated its full-year outlook. The company now sees annual net sales of between $14.7 billion and $14.8 billion, with core sales growth of between 1.5% and 2%.