April 28 (Reuters) - Sharpie-maker Newell Brands Inc on Friday forecast annual sales and profit at the low
end of its previous outlook, signaling a hit from softer demand
for its products and higher costs.
Shares of the company fell about 2% in premarket trading.
While the supply chain snags gradually ease, the
Atlanta-based company is still grappling with elevated costs,
including for raw material, as well as slowing demand for its
home and outdoor products such as containers and camping gear
after a pandemic-induced boom.
Besides, consumers have turned price-sensitive as elevated
inflation eat into their disposable income, leaving limited room
for spending on non-essential items.
Newell Chief Financial Officer Mark Erceg said "consumer
discretionary spending in our categories remains under
pressure".
The company expects 2023 net sales and adjusted profit to be
at the lower end of its prior range of $8.4 billion to $8.6
billion, and $0.95 to $1.08 per share, respectively.
Newell also forecasts second-quarter results below analysts'
estimates.
The company expects to post sales between $2.13 billion and
$2.24 billion, and profit between 10 cents and 18 cents per
share in the second quarter.
Analysts on average expect revenue of $2.2 billion and
profit of 38 cents per share, according to Refinitiv data.
In the first quarter, Newell posted a bigger-than-expected
loss as margins took a hit due to higher costs.
(Reporting by Aatrayee Chatterjee in Bengaluru; Editing by
Shilpi Majumdar)
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