Newell Brands Stock Soars on First Growth Since 2021

Newell Brands, known for products like Sharpie markers and Rubbermaid containers, saw its stock jump 15% to near $5.90 after reporting its first year-over-year increase in net and core sales since 2021. The company's second-quarter net sales reached $1.994 billion, a 3% increase, and core sales rose 2.3%, surpassing analyst expectations. Adjusted earnings were 42 cents per share, more than double the anticipated 19 cents.

A significant factor in this growth was approximately $126 million in pretax tariff recoveries. However, excluding this one-time benefit, underlying earnings of about 21 cents per share still exceeded management's guidance. CEO Chris Peterson highlighted that five of the company's six business units achieved core sales growth, with the crucial U.S. market seeing a 5% increase—the first domestic growth recorded since the pandemic era.

This resurgence is attributed to strategic product launches and expanded retail distribution, which helped Newell Brands gain U.S. market share in key brands like Graco, Sharpie, Expo, and Coleman. The company also improved its profitability, with gross margin rising to 40.7% from 35.4% year-over-year. Newell's management has also updated its 2026 guidance, raising expectations for the remainder of the year.