Second quarter sales at Newell Brands were down as company officials pinned the decrease on the closing of Toys ‘R Us and inventory destocking in the office superstore segment.
For the quarter ended June 30, total sales from continuing operations were $2.2 billion, down from sales of $2.5 billion in the comparable quarter the prior year. Diluted earnings per share were $0.27 vs. $0.46 in the same quarter the previous year.
Newell, in its Food & Appliances segment, reported net sales of $621 million compared with $705 million in the prior year. According to the company, net sales were negatively impacted by foreign exchange, a new revenue recognition standard, a quarterly pull-forward of inventory in Latin America, softness in the fresh preserving business and competitive challenges in the U.S. beverage appliance category.
The company did report growth with its Calphalon Space Saving Cookware and Crock-Pot Express Crock.
Sales decreases were also reported by Newell in its Home & Outdoor Living and Learning & Development segments.
Michael Polk, Newell’s president and CEO, said the company’s accelerated transformation plan was put into action in the second quarter, beginning a period of significant change for the company’s portfolio and organization.
Looking ahead, Polk, in an investor conference call, said proposed tariffs could have an annualized impact on Newell of about $100 million, a figure that could go higher if the current 10% tariff proposal is increased to 25%.