Newell Brands is cutting list prices by as much as 15% on its Rubbermaid food storage line and trimming prices on several key items in its Graco baby-care portfolio, a company spokesperson said.
The spokesperson said Newell has reduced MSRPs on items including the Pack 'n Play playard and the Turn2Me car seat. Price moves at Rubbermaid follow investments in domestic manufacturing capacity intended to offset the effect of tariffs, the spokesperson added.
The announcement comes as consumer packaged-goods companies face increased resistance from shoppers contending with elevated costs for essentials. PepsiCo recently said it would reduce prices on popular snack items by up to 15% after hearing consumer feedback, underscoring broader demand sensitivity in the sector.
Newell's shares dropped roughly 14% in premarket trading on Thursday after the company projected annual adjusted profit below analysts' expectations. In December, Newell eliminated about 900 positions and recorded up to $90 million in restructuring charges. The company also closed around 20 Yankee Candle stores across the U.S. and Canada as part of its restructuring actions.
Earlier disclosures show Newell raised its estimated tariff-related costs for 2025 to $180 million from a prior expectation of $155 million. For full-year 2026, Newell is targeting normalized earnings per share of $0.54 to $0.60, compared with analysts' average estimate of $0.60, according to data compiled by LSEG.
Investors and market participants weighing Newell's valuation can assess whether the stock appears attractive using available fair-value tools. One such tool combines 17 industry valuation models to generate an estimate of intrinsic value and to provide comparative signals for stocks including Newell Brands.
Summary
Newell has implemented price cuts of up to 15% on selected Rubbermaid and Graco products while signaling lower-than-expected profit guidance and increasing estimated tariff costs; the company has also pursued workforce reductions and store closures as part of restructuring.
Key points
- Newell is reducing prices by up to 15% at Rubbermaid and on several Graco items; MSRPs were cut for the Pack 'n Play playard and the Turn2Me car seat.
- The company invested in domestic manufacturing to help offset tariff impacts and raised its expected tariff costs for 2025 to $180 million from $155 million.
- Newell forecast normalized EPS for 2026 of $0.54 to $0.60, and shares fell about 14% premarket after projecting annual adjusted profit below estimates; the company previously cut 900 jobs, booked up to $90 million in restructuring charges, and closed about 20 Yankee Candle stores.
Risks and uncertainties
- Consumer pushback on higher-priced packaged goods could constrain pricing power and revenues in the consumer packaged-goods and retail sectors.
- Rising tariff cost estimates and restructuring charges introduce earnings uncertainty for Newell and could weigh on margins and investor sentiment in the household goods and baby-products market segments.
- The company’s forecast for normalized EPS that sits at or below analyst estimates creates uncertainty for the stock’s near-term performance in equity markets.