ATLANTA, October 31, 2025 – Newell Brands (NWL.O) slashed its full-year earnings outlook and reported weaker third-quarter results as rising tariff costs pressured margins at the Sharpie pen maker.
The consumer products company’s guidance cut signals how trade tensions continue to squeeze retailers and manufacturers dependent on imported goods.
Key Takeaways
- Full-year earnings outlook cut to 56-60 cents per share
- Tariff costs expected to reach approximately 50 million impact
- Gross margin compressed to 34.1% from 34.9% year-over-year
Market Reaction & Financial Impact
Newell shares fell four percent in early trading following the earnings release 6. The stock has declined roughly 15 percent since the company first warned about tariff pressures in August 5.
The company reduced its full-year adjusted earnings per share forecast to 56-60 cents, down from the previous range of 66-70 cents 2. Third-quarter gross margin fell to 34.1 percent from 34.9 percent in the prior-year period, with tariff costs cited as a primary factor in the decline 6.
Tariff Pressures Mount
Newell estimates incremental cash tariff costs of approximately 50 million compared to 2024 levels, according to the company’s earnings release 4. The increased import duties are compressing gross margins while raising cash costs and harming operating cash flow 3.
Recent tariff increases have forced the company to raise prices, testing consumer willingness to pay higher costs for products including Sharpie markers, Rubbermaid containers, and other household goods 7. The pricing strategy appears to be meeting resistance as demand softens alongside higher costs.
Broader Industry Context
Newell’s struggles reflect broader challenges facing consumer goods companies that rely heavily on imported components and finished products. The company joins other manufacturers warning that trade tensions are creating meaningful cost pressures that cannot be fully offset through pricing actions.
Operating cash flow guidance was also reduced as the company grapples with both higher input costs and softer consumer demand 8. The dual pressure points highlight the difficult operating environment facing retailers and manufacturers with significant import exposure.
Management Response
The company continues to implement cost-reduction measures while selectively raising prices to offset tariff impacts. However, the latest results suggest these efforts have been insufficient to maintain previous profit projections.
Newell’s experience illustrates the ongoing challenges for consumer products companies navigating an environment of elevated trade costs and cautious consumer spending. The company’s diversified portfolio of everyday household items typically provides some demand stability, but pricing power appears limited in the current environment.
Looking Forward
The lowered outlook represents Newell’s second guidance reduction this year, underscoring the persistent nature of tariff-related headwinds. With trade policies remaining fluid, the company faces continued uncertainty around input costs and margin pressure.
Investors will be watching whether Newell can successfully implement additional cost-saving measures or achieve pricing increases sufficient to offset the tariff burden in upcoming quarters.
Not investment advice. For informational purposes only.
References
1(October 31, 2025). “Newell Brands Cuts Outlook As Tariffs Raise Costs”. Yahoo Finance. Retrieved October 31, 2025.
2(October 31, 2025). “Newell Brands Cuts Outlook As Tariffs Raise Costs — Update”. MarketWatch. Retrieved October 31, 2025.
3(October 31, 2025). “Newell Brands’ lowers FY25 outlook again as tariffs continue to eat into profits”. Seeking Alpha. Retrieved October 31, 2025.
4(October 31, 2025). “Newell Brands Announces Third Quarter 2025 Results”. Newell Brands Investor Relations. Retrieved October 31, 2025.
5(August 1, 2025). “Sharpie Parent Newell Brands Cuts Outlook on Tariff Hit”. Investopedia. Retrieved October 31, 2025.
6(October 31, 2025). “Newell Brands shares fall 4% as Q3 revenue misses estimates amid trade disruptions”. Investing.com. Retrieved October 31, 2025.
7(October 29, 2025). “Tariffs And Weak Demand Cloud Newell Brands’ Outlook”. Finimize. Retrieved October 31, 2025.
8(October 31, 2025). “Sharpie Parent Newell Brands Cuts Outlook on Tariff Hit”. MSN. Retrieved October 31, 2025.