Newell Rubbermaid Q1 Net Slips 2.4 Percent

Newell RubbermaidATLANTA-Weak sales of home products and higher costs both played a part in reducing Newell Rubbermaid's first-quarter profit and sales.

Net income in the quarter, which ended on March 31, fell 2.4 percent to $52.9 million. Net sales were down 0.7 percent to $1.2 billion. Sales in Newell's Home Solutions segment were down 5.2 percent, the result of the difficult weather in much of the first quarter along with reduced merchandising of certain low-margin products in the Rubbermaid Consumer sector, partially offset by increased distribution of Calphalon-branded products.

Selling, general and administrative expenses (which included a charge taken for the costs of a voluntary recall of harness buckles used on toddler car seats) rose 3.1 percent in dollars and 110 basis points as a percentage of sales, to 28.6 percent. Gross margin was cut by 10 basis points to 38.1 percent

For all of 2014, Newell said it projects core sales growth of 3 to 4 percent. Michael Polk, the company's CEO, said, "We are confident in our full-year financial guidance and expect the company's core sales and earnings-per-share growth to accelerate through the balance of the year, as we significantly increase advertising and promotion investment levels in support of our brands and innovation."

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.


  • Von Tobel Cites Brass Textures Among Top Trends

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN cover for September 2017


    September 2017


    2017 State of the Industry Report
    Cautious Optimism, Mixed Results

    Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.


    •  TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
    •   Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
    •  N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.