Why Newell Brands (NWL) Cut Guidance After Sales Fell 7.2 Percent in Q3 2025

• Newell Brands recently reported third-quarter 2025 earnings, citing a year-over-year net sales decline of 7.2% to US$1.81 billion and a full-year guidance cut due to weaker consumer demand, increased tariff costs, and ongoing challenges in international markets.
• Despite the disappointing results, the company highlighted successful new product launches, including the return of the Sharpie Extra Fine Permanent Marker exclusively at Walmart, showing responsiveness to consumer preferences within its core brands.
• We'll explore how Newell's downward guidance and tariff-driven cost pressures impact the company's previously optimistic investment narrative.

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Newell Brands Investment Narrative Recap

To be a shareholder in Newell Brands right now, you likely need to believe that the company’s innovation pipeline and iconic brands can drive a sustained turnaround, even as sales and earnings remain pressured. The recent guidance cut puts the spotlight on short-term catalysts like product relaunches and supply chain shifts, while reinforcing that rising tariffs and weaker demand remain the most immediate risks to any earnings recovery.

The exclusive Walmart relaunch of the Sharpie Extra Fine Permanent Marker stands out as a relevant announcement, reflecting Newell’s push to reignite consumer demand for its core brands. While initiatives such as this aim to sharpen Newell’s competitive position and support future revenue growth, the effect could be muted if macro headwinds and cost pressures persist.

Yet, against these efforts, investors should not overlook the impact of elevated net leverage and rising interest expenses on...

Read the full narrative on Newell Brands (it's free!)

Newell Brands' outlook anticipates $7.6 billion in revenue and $482.4 million in earnings by 2028. This reflects a 1.0% annual revenue growth rate and a $725.4 million earnings increase from current earnings of -$243.0 million.

Uncover how Newell Brands' forecasts yield a $6.42 fair value, a 89% upside to its current price.

Exploring Other Perspectives

Six recent fair value estimates from the Simply Wall St Community range widely from US$6.43 to US$19.18 per share. While many are weighing innovation and brand relaunches as potential positives, concerns about sustained sales declines and margin risks remain at the forefront of market conversations, consider these varied viewpoints as you assess Newell Brands’ outlook.

Explore 6 other fair value estimates on Newell Brands - why the stock might be worth over 5x more than the current price!

Build Your Own Newell Brands Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Newell Brands research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Newell Brands research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Newell Brands' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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