Newell Brands (NWL) 29 Oct 212021 Q3 Earnings call transcript

Good morning and welcome to the Newell Brands Third Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder, today's conference is being recorded. The live webcast of this call is available at ir. newellbrands.com. I will now turn the call over to Sofya Tsinis, Vice President of Investor Relations. Ms. begin. may you Tsinis,

morning, to Good quarter Brands earnings call. everyone. you. Newell Welcome third Thank

with are and me President call the On today, and Peterson, Operations. and Ravi Chris our Business CFO President, CEO, our Saligram,

measures, no we statements. outcomes of call, which reconciliations financial may of including and believe course involve differ measures I'd they during forward-looking uncertainties. I'll to non-GAAP available certain presented and those undertake Newell's Investor non-GAAP and be today's And as to measures. to referred you on material should superior materially, we inform Before that accordance obligation begin, Actual forward-looking and Ravi. the risks making will to update statements today's like language call measures results as we other to to Explanations and release, refer the the tables, website. non-GAAP as measures, cautionary not website factors Thank available Form release refer and also turn earnings the you with discussion filings factors Relations risk in our will statements. Please our recognize in our found between XX-Q, these of these investors, to to forward-looking We for further the now Relations you. in earnings are non-GAAP normalized over be measures well useful Investor although XX-K, that considered Form can affecting available today's and I'll our GAAP SEC who be in remarks GAAP. and

the our the agility each and which solid versus contributed reflects everyone. Yesterday, strategy, grew to earnings XX.X% of delivered call. business such XX% third in across record welcome X per our quarter business Recreation. increased terrific over for Xth sales Outdoor operating sales profit model driven quarter, And no core Fragrance, core and a Core the Home our normalized portfolio. quarter in XXXX, Thank Good by effectiveness of the growth as and Normalized the X.X%, XX%. our & results consecutive share straight Company. outcome. as resilience and quarter feat. growth well as morning, strengthened units: small you, Sofya. marks Baby, Home of increased We unit consumption operating Appliances, further This improved and Xth to third Writing, sales as excellent track was about quarter We the the domestic of performance

the to we difficult XXXX. third normalize Newell's which Given majority low Newell's in compare comparison recovery sales useful two-year grew of embedded quarter. To year-ago across stack single think digits year's growth, business. it's this top-line sales core shifts, the basis, related pandemic X.X% the of a to core a for On

relative XXXX trends moderated significant testament and commercial also forging food and that made launches. across back-to-school Top-line the to strong year-ago in in terrific The in leveraged insights We job in share we've team against done foresight, our important superb saw for domestic writing businesses. product elevated outstanding during the our consumption has momentum as consumer our and A new performance a continues. Bradford's shoppers, each results relationships season, and business units. a stronger with with resurgence in business anticipated. consumption, the of progress, as results

to brand North Outside the consumption I'm outs quarter Home the trends brands Latin Company. constraints. helped quarter also in of our It's brands undoubtedly supply -being. evolve merit to also and Coleman, America, domestic efforts. strength in Esta, many and once as and Mate, had delighted that continues delivered sales of consumption elevated our building of will America domestic that Cost Yesterday, about outdoor despite and that shoot benefits XXXX remains categories through despite growth: from Sharpie, posted levels, our growth. has Gorge believe Company's with But comparisons. will delivering rather as come However, TOS out both Dima, of well North third largest activities ahead ball great the America double-digit evident total and XXXX and remained the well XXXX interest as fortified another just the year, in Yankee, business harnessing normalize. Mate personal top-line funnels iconic levels. in growth year-to-date, Rubber, again, the XPO behavior excellent endure well Mr. mindset innovation as continue Consumer for Coffee both our we Paper heightened units this will the CAM,

how also has increases. strength, brands implement successfully price to Our

impact we laser gross the fully last the are to actions, additional the e-commerce from Similarly, mid-single-digits, top-line time. we grew pricing penetration level XXXX. above recoup slightly quarter, year protecting ensure and of focused second will Company's digital closer inflation We with necessary, mid-teens on market. to the ahead trading over take of that X%, If significantly

capabilities and regardless position vowed to demands omni capitalize where shop. our consumer on behind they of invest to our continue We

spend has a units, on Writing, in well, markets. investment. few sales of driven the though and quarter international quarter sales on basis grew Core to double-digit U.S. the at strength Core two-year in-person as AMP third throughout sequentially excellent the a beginning U.S. majority me testament cathedral a Writing higher leaned health Let even schools by with momentum not has accelerated business. The the stack and learning. our a increased XXXX rate, commercial business the to U.S. fully minutes vast the in broad-based been return of with as strong superstar. is business This in recovered Consumption we yet. third channel in the our the into

markers, everyday erase dry and We quarter back-to-school season, in including merchandising business in as whole, strong such share from permanent S-Gel pens, saw Sharpie strong and gains. as during pencils, writing highlighters. considerable During S-Note, business, categories, innovations rebound Sharpie such the a glue, the our and writing key up which plans distribution back-to-school we as benefited picked markers,

highlighter we've basis points Newell's a XXX Baby Over XXXX. segment. business the well expanded the category. the years, of sales the past meaningfully Where consumption far Core marked and Thus over consecutive Sharpie by sales S-note of stimulus QX market share. highlighters, its relative innovation, double-digit of continued share we've rather increased both growth, XXXX, our within for growth, growing Xth enhanced driven few pen in domestic distribution, gained supported tripled of position rate, has in funding. as points core terrific by quarter to at in e-commerce, strength XXXX

into penetrative as durable Charles within highly most tax consumption the and credits, boost goods income, mid-XXs. the We leveraged omniProvus is we digital quarter market, in all Baby to disposable the our have several gear online, Newell's portfolio, the our business penetration the believe in well increases benefited past as over further While quarters.

to fragrance remain its In the consecutive is momentum to quarter continued market. standing the improvement. and we fifth of expect moderate, While growing to Graco likely up share picked cost in rapidly healthy. sales gain Home it U.S. in category the

sales by elevated to Candle In benefiting As stalls, positive both mobility. relative large EMEA. X,XXX momentum, the XXXX, growth well in increased U.S. their they core grew from as Yankee part [Indiscernible], driven training consumers, levels, as retail maintain

favorable consumers to Yankee us drove from we as well across online omni continue stores, pickup Candle expand ship-from-store our capabilities, buy and a we as fulfill options helped to response rolled in out stores, consumer As our retail and which demand.

level. was our quarter, and sales elevated the period a holidays ahead. lockdown Oster of the as is the growth third tremendous the New gearing by exacerbated and including the sales moderator period consumption and growth core of businesses, double-digit In core Fragrance, X,XXX challenges, to I significantly in for for crucial up see And value are but a Food, the steam Home ahead of base runway team was business. in decline. is XXXX with plant anticipated, supply resulting As business along Writing toughest, accelerator growth QX The for full Zealand, COVID-related comparison relative

the meaningfully XXXX habits, domestic of and the throughout Which consumers top-line base. stickiness were that both the consumption, pandemic. highlights However, the of developed ahead

elevate the a such mid-Q momentum launch and The side. drove most well been normalized. food strong innovations expect updated We preserving. Rubbermaid driving as preserving, as credit. contributed fresh consecutive market have nesting that's Ball. Brilliance share category quarter. in on beverage Recent latch, We line, as home appliances, sixth share Ball Cookware and been for Rubber share for they jobs In to experience. improvement to new storage gains food from consumer as instrumental class, storage pantry In in Mate, the take core the the increased have Ball evident for And Rubbermaid, sales

the in celebrating as the refuse Newell basis, washroom Oster consumers significant comparison both U.S. elevated people the against have POS surge supply and continue these cooking air POS last increased retail sales with channels, Latin the core category of product the as [Indiscernible] business outsized categories, challenge normalize charge. In -- Latin once In the well Throughout quarter. in a The and sales although brand pressures. pandemic. seen double-digit each in relative the cleaning rice America year's Domestic nicely continues recently is base the Oster landing and our and is blenders to oven Oster for saw as fry. third sales multi below the wide the been on with the levels, inflationary with in two-year the restaurants, job to modestly Commercial XXXX led a spearheading remains post as but air ranging again market, the We On declined I've back the solutions. brand a toaster has healthy ahead fact -- new addressing on home XXXX, the pandemic. The wins, new this Oster fry, significantly that stack levels throughout to others. team from material the handling of launch anniversary functions. our great dine-in versus significantly beloved region. level year. come interest diligently swap done and BXB constraints, has across in Despite show business, in at activation And core growth to of side. sites trends track to during cooking and only cycled launches America, well cooker of toughest XXth team search

both year. quarter, as inventory sales During strong core for we under security already comparison, last softness the pressure, year-ago stocking reflects home despite the very were connected challenging the retail and business in Core at U.S. sound third consumption

due in year-ago mostly rebound was recreation against strength in Outdoor fueled As on-the-go a year, to sales a with challenges delivered X%. to of quarter develop matter and current at improvement by of improved continuing the nearly unit well component straight comparison difficult consumer mobility. the sales the outdoor of business growth equipment, Core shortage. chip as its core publicized categories, third X%, beverage availability

Today X-burner USA as who for trend will cooler them at such both products and are in we'll us Skydome well. to far thus encouraged continues goals, industry. consumer improve next so pressures significant enhanced with as share tent, mind Outdoor bag, by to with in and by momentum bidding exceeding to of endure. continue Coleman to holidays. related think perfect play on POS stove normalized turning that equipment the leverage we in the place innovation. top-line show throughout continue travel, benefiting and results earnings inflationary And year give to despite We keep gifts the, interest The Strong XXXX levels. non-acquired unit XXXX in for are supply one strong featured Many in our confidence plans as chain Coleman growth, XXXX, per and love our the the lineup for our from product people in outlooks our

implies Our of expected a difficult digits. particularly is for updated normalized outcome, that operating operating single the in grow to environment. XXXX great high context profit guidance A

external made strengthened forces, strategic we're the the over have and the years, our substantially Although portfolio more actioned Company, resilient. past we've immune are certainly much decisions several not to the

consumer channels. Firstly, channel all capabilities have capturing that instrumental, we investment in in been omani(ph) across demand

positioning marketing substantially focused the side, The buying sites consumer and of recently and in our consumer many completed North continuous for experience. direct-to-consumer with our one a foresights, leveraging muscle, that brands. innovation, brand migration strengthened dedicated sharpened core of consolidated We platform, America. we've insights on On team on improvement

our and strategic We consumers We've key enhanced center scale customers, organizational with established and new inefficiencies. a plans the partners. model relationships that to for instituted our leveraging business hybrid brings domain while closer joint have retail experts

challenges the life. overheads, for complexity has productivity posed been a and of improved despite a have reduced inflation. made strengthened cash XXXX, turning supply We've and cycle, We in conversion balance sheet. point by Newell, way

incredible done deliver job, Our teams environment, percentage have executing sales and poised growth in we XX this an to this plus year. core are

ability continuing pandemic grow our comp. we the cannot two in strong be have recognized strong The rejuvenated, this that is to a a story. the of power we lacking we're that brands even just are cities, tale top recent for history. We sales our The is are reactive. diverse we coming context in in We grew portfolio macro the us We're issues XXXX. through. growth taught first of to QX, easier on have the that and of including XX% XXXX and count, half. IT Company in In Our has The our for do us. first indication focused business delivered improving SKU fact it laser the accuracy, infrastructure, resilient, been half, to simplifying reducing customers lowering first-half, growth in X.X% on strengthen growth forecast with that and fundamentals of from an second-half complexity, year's last and our second core being making

integrated over an creating banner Project Ovid. under chains are supply the network distribution consolidation newer through XX the of one of We

supply of actions Looking macro our on expect through levers. XXXX charging successfully persist. margins. one and was be top-line, Therefore, realism, year preparedness, will the is to improving navigate challenges XXXX forward, to margins the inflation of Improving primary five taking and turbo in environment. a focused stance we proactive If

pricing, focus optimizing on spending. First, an promotional and intense

all taken in of increases have We geographies. across now price X XXXX in our most businesses

share to be impact protect 'XX 'XX. 'XX from the increases to off of take margin. pricing maximize to Our carryover And and inflationary will on gross trends further based prepared we be in to will

our for this remain our ensure customers Of in consumers. that brands value course, will great with a do consultation and

and our to accelerate efforts by profitability improve a consolidating the Newell international approach. of operations, business reducing our duplication, adopting we'll one Second,

innovations will to price we overheads. we accretive. be continue Third, be Fourth, with to margin more will efficient

to our commitment, over for be improvement -- productivity ahead now what to create I'm drive our to done costs, and continue years. few tremendous we'll employees, extremely shareholder hardworking of X% the we puts, best-in-class are have unwavering and as their in last XX,XXX be Newell to Chris. perseverance. our can On I Finally, thankful to remain us. about and value, strive in up and tenacity, efforts, optimistic that days best over set X%

everyone. And you, Thank Ravi. good morning,

terrific drive quarter, to the and execution, financial our During we with results we solid operational into us than the supply delivered as coupled third discipline, continued through teams our cash the choppy context We and logistical a cycle. environment job this operating conversion generate strategy better navigating sustained anticipated to Strong enabled of a bottlenecks. accomplished progress of in profits as action. on operating did myriad a

little operating Escalation inflation Before to dynamic the we XXXX. a in into the Similar proactive been and the we on getting details, chain making. has continued throughout want disruption. experience other ongoing and quarter, companies, current third throughout environment provide to significant to I an choices color costs are supply

sold, of goods, now commodities, is broad XXXX been for inflation currently and finished full of at ocean impact sold, have $XX the expectation been particularly has pressures inflation labor. X% relative inflationary expectations goods of on expected freight, to cost of sourced goods from compared to headwind While based, to the largest around us year The resin, represent start cost worse, We to be the last our our quarter. our expect year. about of about X% million as forecast

by and year the spend, to until promotional timing EPS QX, lag costs largest leveraging the this excellent and some in given the resilience, We P&L and towards gap between continuing announcing normalized on have escalation expect on the impact guidance this benefit through the the across inflation expect for and teams. with pressures execution to inflationary Despite our all productivity The we continued pricing and businesses to actions the year to in multiple range. from from do implementing our not control our the initiatives, that from pricing. efficiency of strong flow driving from represents here. unprecedented numerous our previous gap expenses, are inflation, over sequentially of a to disciplined and will the QX narrow including to the for higher-end headwind taken price testament this growth. A the We exercise dynamic increases mitigating top-line offset strong full raising alleviate leaning outcome actions rounds, next

chain. Lead products. times supply sourced for onto Moving

Some of well congestion, increased materials -pandemic shortages from and in the levels, a availability, limited components raw have as truck been as pre result XXXX. significantly challenge container force, and has as port This labor an ongoing drivers. throughout

the However, on to largely taxes on an the along and with past significant few start meet driven allowed early SKU demand. progress we rationalization an over us tactics, -- have the mitigating us strong have in put advantage years,

and taken forecasting conditions feasible. training throughout distribution selling high-priority benefits, lead on frontline for longer we've the and in actions skews, base year factories supplier where building for opportunities following: working Accelerating early our and the it the process inventory and our XXXX employees. across enhancing adjusting top of our automation Improving times, our Some include in diversifying and centers, compensation,

capabilities factories consolidating fact, announced chain is meaningful future. initiative In across both steps the supply appropriate the efficiencies. significant in but near planning operational We unit quarter, wage manage drive supply many to chains supply the and Company's by integrated centric U.S. Newell's expected service XX into in customer chain in levels enhance Ovid, customer a chain. single supply We're network and experience distribution recently optimize go-to-market increases dissipate the starting term, in and taking new which - to a more of to business end-to-end transform U.S., do that are create third and pressures our centers effectively We supply within we our agility the announced we expect QX. the to are in we not distribution them, the confident during

minimize it in intend We about implement potential any fully to months expect out disruption, will to waves. XX we To take Ovid. it roll

completed as an and retailer the automate, We're implementation chain completion, integrated and important Upon passed streamline, our we blueprinting reliable partner Ovid us now milestone the we supply QX, testing and position expected moving and digitize into is a design to phase. as of choice. phase. During

should contemplated events, much While stronger it the footing Ovid going recent once to implemented, on us was a being prior forward. position

Let's now from XX.X%, for year-ago mostly step-up across which XX.X% savings, segment, pricing mix, was of against business at move the a in basis as except billion, as X.X% increase quarter as as and as margin X.X%. XXX cycled more outcome inflationary core we This gross gross promotion in development. fuel favorable driven third grew to well XX.X%, by excellent expense. a to contracted year-over-year pressure, sales comparisons reflecting from in ago, year Normalized headwind, down year-over-year sales by offset difficult significant points X.X% productivity growth core basis nearly with results. learning an sales quarter. to and period, gains Net every $X.X points came advertising or the in operating margin the than well XXX Normalized margin was

We benefit to earnings XXXX. share about in unfavorable overhead to $X.XX lower million ratio tax items. of year. for debt as Net X% $X.XX discrete The in million contribution $XXX Normalized of to accounted per continue year-over-year. diluted and drive rate nearly reflecting to amounted due tax came rate a QX $X.XX normalized $XX period reduction of year-ago tax normalized move year-over-year. a to year-over-year about the the last in expense from to compared to was The by manage tightly $X down sales lower million relative costs interest versus X%

home comps. as increased America. the and sales strong decreased in driven in business which offset performance. faced segment and commercial core which in decline solutions Core sales X.X% Latin sales quarterly writing segment appliances security lapped XXXX. Core more fragrance and home food, sales Development segment growth down commercial Core segment was both for as Recreation X.X%. segment both Baby home the grew half-year by for business for than X.X% the its Core double-digit The were increases. home Now, in and toughest solutions to X.X%, units, and sales Outdoor business Learning XX.X%, the turning comparison grew for declines units ago of by connected the due primarily delivered to the a Core our

$XXX sales than line the XXXX, double-digits increase each growth. core stack working in above levels of $XXX an X.X% third basis, Newell's million sales the the in the with This as significant in momentum exceeding reflects were increased times more well cash XXXX, the support income On net ago. during offset period. a Company's low operating operating flow year-ago quarter top was Year-to-date Company's X-year capital in year-to-date inventory, QX, segments for to versus years transit from in and as million elevated which periods. of X

well cash redeemed in We choice, XX in was approximately year reflects EURXXX senior in as to another Furthermore, Company continue Company's to XXX end quarter, X.X in X.XX% next third the debt, a a our intention days. days down increase leverage improvement redeem X.X XX-month times month. Newell's million down ago. the due QX, notes conversion remaining cycle, as by normalized trailing proactive the the drive of October the came XXXX. mid-teen X% mid-October, which In down times we pay At EBITDA. XX The to from improvement of our were of announced that notes a million ratio

a stronger times, significantly into in for We for indicated below healthy fourth supply new grow leverage our than We years debt a relatively times. Sheet prior in several and QX, this Balance anticipated ratio consumer This no targeting the our disruption, offers. our as escalation, the as tender quarter, additional of backdrop performance that updated the the accounting over chain of we X outlook further XXXX and morning, immediate well X.X U.S. for, target, in we costs are Newell's intend plans have recently of to past strengthened with EBITDA goal continuation

our supply to and actions the We consumption we the XXXX of alleviate forecast as raise for again once constraints. to result taken have are early a top-line chain pleased healthy

each quarter that core top-line revised of are versus guidance XXXX XXXX. implies expected Our sales to during grow

second well versus first and Our half year. will for as core outlook XXXX, the sales as up also be of in the full the XXXX indicates

currently up previously. the of to forecast billion the XXXX through year net year-over-year go of We outlook. about $XX.X full billion $XX.XX to represents billion XX% Let's of This growth. from sales $XX.XX details $XX.XX billion

are fourth We of majority our quarter. XX% XX% from XX%, core with outlook the to in upside the raising previously, to sales to X% the

expected the modestly Yankee impact While business retail still recently, other the has is outweigh dollar from Candle closures exits. to U.S. strengthened store currency favorability and minor

As raise a result of including frontline, full-year in decision the further QX, slightly our to to to costs, now escalation wages normalized be margin down relative for in operating we starting expect XXXX. XX.X% in

implies grows of to forecast $X We expect operating pleased assumes a that flow high of increase a to a updated operating in full factoring and our share advertising when year is cash normalized no effective and tax year Newell's a single-digit unprecedented as our rate earnings range Our to slight normalized in shares from improve $X.XX to the result profit level to mid-teens the solid at cycle. change guidance previous anticipate in spending. We're rate, outlook promotion continue $X.XX. a increase This conversion in acceleration approximately forecast normalized outstanding. inflation. billion full absolute level $X.XX of per in of $X.XX we There an cash

$X.X to down on a to for be net core with guiding X% billion, expected range X%. up sales we're $X.XX billion to of fourth Focusing sales quarter, of the within

from and productivity margin operating XX.X% X.X% normalized outweigh as pricing. continued assumes guidance benefits Our year-ago to period inflation in to is the X.X% versus the expected of

range. tax $X.XX share forecasting per to effective $X.XX earnings are normalized in and the normalized rate XX% a around We

encouraged to early we the planned next funnel innovation on of we're our on a budgeting for I in our have the perspective teams We're side still how a high-level ideas cycle provide by it. wanted year. are made and approaching strong for have new XXXX, While progress

anticipate However, delivery, muted difficult more a top-line comparison. to very a we due

relative expected benefits should XXXX, While as in to This productivity. we is margin carryover pricing levels, well inflation at from to XXXX. as remain stronger are performance result significant normal above looking in

we to We We out projects, will has continue Haven strides we across believe for years. strategic intend as specifics build path during call, we'll that open now growth. position as automation for Operator, Newell excellence the in on with execute fourth-quarter creation, and for make the continue organization, value we been implementation. diligently strong and profitable Brands additional to call to our We provide and the have let's sustainable the ensure more to norm operational a roll Q&A. agenda, recent

pause to questions. allow a Thank everyone to for opportunity an Instructions]. you. signal moment [Operator Will for just

comes first Truist Your from Bill Chappell with question Securities.

morning. Good Thanks.

Good morning, Bill.

question I in on to in And some the carryover quarter. expectations mean, there's you whether contributed the that writing of and next to sure you still played back a I -to-office. Just how that particular. be may year. really how in much had muted we're tail on the move know your versus as upside. a outlook, back-to-school

there So, any color great. be would

How This morning. are Sure, Bill. Good Ravi. is you?

Hi, Ravi.

Look.

I very think writing performed well.

there Delta were we I knew good think but about the sure Variant. the the big quarter, we'd their worries have a thing was we back-to-school, weren't when we into went

one this I learning open for issues think was, and schools of keeping what was became evident a the is bipartisan fairly the view. impacts

that package, - that on before, had ball distribution, of out also, hit it, super in for this majority Tennessee. schools merchandising, getting the on watch can we and the [Indiscernible], on from our comes so we because team, they innovation. the we park one commerce, e on manufacture just products to our of credit have was see They is, So, great. Dymo, most and as China said really But we of of businesses. because which whole except opened, the

supply. have so, good were to And able we

Despite and expectation. the in positive think this really yes, did the is take as because to We're up, had continuing. did we still maybe that, it we fact And we're extremely maybe any offices didn't the they of expected all will margin that very our think backdrop I helped. start So, but opening day. And that because I business, business momentum the probably much. look But Delta, it's better than a pleased. bit that well, seeing positive highest that not of

as you from concerns -- you you Sure. I what not is that supply in think for holiday seem, Home Appliances you're any looking enough overseas. No, Fragrance, terms are things you know don't be thinking but strong on a it said can don't inventory bringing as the chain, I you and there, it have of going of holiday into pretty season? getting upcoming to Home And make it looks season, anything really here, Asia then but absolutely. more -- all all anything

we're one, very Yeah. good shape. Bill, on that actually in

is things add We supply chain we X X early when of we ago, One starting ocean to process. ago. months and particularly saw X on the process lead planning time freight, months build, the did probably to we to with that expected pressure did the planning adjusted that about to our

a bunch at if our we inventories. levels our year, That's we've ordered are why reason higher last why selling result, skus. to of part significantly they our the balance than As inventory look of early were sheet, used top a build and you cash

from in feel are appliance So, meet standpoint. inventory we that we category, particularly demand well-positioned an the strong to

That's great. Thanks so much.

Thank you, Bill.

comes question next Your with from Andrea Teixeira JPMorgan.

have of you customers ahead of XXXX. the I'm XXXX. getting into you demand I right? And increased. I building additional we in as inventory you. just some to wanted your these have are would Thank of margin and cognizant a of when of fantastic probably on check before these the and mentioned the penetration share it, ahead market to working to of say what you to I And hoping Chris, we had see is I also be mean, also of gross said, been to appliances, was of that products, back And go cadence cadence of you progression bought the holidays. holiday? wanted enter what small just in double done cycle household And this terms that but you And I -- and want is what take XXXX, pricing, your saying actions carryover into so take what said on the that wondering, to your some

our for Clearly, customers, question Andrea, X Home Fragrances. number but believe And Chris pricing not just Superbowl side, also go we'll are for the pieces. retail I'll stores. us a have on answer our the all the in is into own you give well view piece holiday, when Fragrance we split I'll appliances. and poised that's Home we the you X business the into on

far you As growth, future, yes. driving to the some go, the been see think lot say, purchases. and quarters there a as so I'm of -- have very appliances, making, there has small been categories several said that consumer we're they've as Clearly, But we've innovation. the acceleration and down many has very within been having progress, we appliances team look to that, of pleased of I are had

and Iced, coffee we've the So, old cold. we Mr. Hot have with Coffee ice now got pulp,

you and to sell. to a but not work in innovations look, each -- to -- of portfolio. you particular whole? So, can't we one how been it look I as end growth the the that there, that day just in a drive we the portfolio do at And actually lot beauty the feel term place, brought as new so the of a new will help coming quarter we're work We've good say, think but entirety main, the Newell you business, view entire in manage into have us users, to long of I market has how got the in the

then Because the affecting impact little units business differently. business business business perspective. me fragrance, bit Writing continued home bit there is pricing the a the of in less during affected difference provide single announced our pricing picture inflation we because two get for The has front, are are inflation is the The to on And how other businesses that example, a to little inflation. try of have the the On more pricing the are significantly one and is units headwind, impacting Commercial every and year affected. Food of much by significantly like At a units. of most point, announced this affected let business terms our units, everybody timings. business. inflation and different on of But that we've

fully not we to seen demand we far. put now that in at reflected to least place the in in The that put kind June May, so, reaction date, from And the April, that the so first of went And good broadly is pricing pricing any into is retails. that we of pricing -- consumer about into news time period. have negative set pricing place

that is of second is And that so sign. take pricing, already a beginning that or going -- into effect announced into in a broadly, round largely There that very we've positive either we as of effect going November that's January.

you impact sequentially the forward in here. so, P&L, And as the at pricing get look the from we P&L bigger when is the in impact pricing going significantly go to

next have it QX QX it pricing largely of periods. bigger year. right year, be same time, we and QX the help mitigate think will us should So, In of biggest stay if in this they will QX be than in in QX, pricing At spot this in implemented a QX will we as are, Inflation of spot impact than bigger year year, in to base where is if was a begin next of the will been and rates inflation, QX. for lap be -- help

we we inflation So QX pricing gap. that think think sequentially delta forward. and going starts gap quarter close, gap if you each and of that that productivity, between biggest And will, reduce to the was

super That's luck. Best great, focused of health on.

question Tong, Raymond comes next Your with Olivia from James.

Thank but do know talk you consolidate. presumably chain and right you. before the you [Indiscernible]. I be challenges for was of about the switchovers time can project question Good planned supply Great. just first likely start, as some is around why global My morning. there now this disruption

if logistics to you the a more little had [Indiscernible] given recently, and all that plan So, on more challenges continue expand the bit expand to

Yeah.

is it rationalization. time, months now We made we reason SKU XX of me XX XX project COVID kicked or months it on the off kicked progress Let try ago. why or but until ago. Barclays, didn't a things. right We we've off because couple is lot XX we And of announce the thought a about

if last So, we turnaround with that a you was reduced of XXX,XXX XX,XXX. to trying sell We've now recall, plan, the to over SKUs. at year started Company through end XXXX the when the

at down XX.XXX. XX,XXX we're to and way we're our on today, of As

truckload Company, chains of is count a move we've taken think to going at the supply shipping to integrated us order single major shipments to go and operation, order forward. SKU step believe full truckloads. different From because scale that so, allow We point a And the small XX really chain. to the the from can from we're quantities, reduction into going out, is this where that from and this step, we cost think less is to ability enforcing forward us in point, take service fundamentals next for a supply our be in a which ways leverage us stand than unique and we we XX a from going of retailers into to now a way improve the and the ship both single Newell

Now, not when the today. supply were and that the kicked off, are they kicked without project off project we in external on how constraints, We chain backdrop place.

has secured to of team done distribution the a mixing supply amazing big centers, prior we job think pretty constrain Unfortunately, keeping the on I the current two track. new dynamics.

project as anything, excellence. execute it. going costs the have prudent transition with And the that go so, dates gotten savings the transportation implementation make on if we're have and from we monitoring But We're be gotten we the bigger that bigger. sure only to

ago is us first more when project to think generate started than we project or to months In the today XX months value going likely the we X fact, ago.

Chris, a think journey. I -- to to embarked started been on have Olivia, at short-term X turnaround, we're terms X. is of of capabilities add years, And we that we've Company making the the some the context. if a new I've but sure healthy. term the close transformation looking as about here in talking long could it Chris, while really we've and about

about the year, stabilizing etc. a structure, spent time the organization, bringing we think of the people, in, the up revving hybrid If you lot the on first getting culture, the team

the have innovation, the years. easier one to brands, why addition because e-commerce, been all next about about our the and for automation think are seeing has chain, all how you're about do our really in getting pricing, is our is margins to momentum. top-line, we customers. and The do [Indiscernible] years really This or going we was we on it's get critical supply business be phase and which with whether to that Next, next about gross

of easier it make then one to Button With have the our next side the international. for is, -- We be that Company. will and

of we're well that journey value, All to execution teams, and these make progress shareholder we along go about confident managed burden slip don't carefully obviously that good think these I very driving this very and have we been will the our sure But followed. all And quite on of we is a of managed cadence. of as a up.

a ask sales. thanks. just Very I helpful, If on could follow-up

every the or sales this the right to deceleration off right recent that? it? the now in Is issues sub-segment about quarter success where, Then you just is to to not grow So, is uncertainty that of think Are stack. Do the XXXX. you specifically assumes mentioned else about first QX, relative there for a big there think base pricing, into or going on this in on pretty more which something outlook of environment, over? the the comp was make the way any this this X years

on give just Olivia. view that quick a me Let

that change. we as But XXXX guide. think over good [Indiscernible] that base. will is But XXXX where about pre-pandemic serves First time, a that good and good a as

strong. one the -- in huge [Indiscernible] [Indiscernible], end, One mentioned we year prepared so a last comp and couple that in all rates, a has reasons and said we've But a the that and which there's as things birth huge like QX, also the of business how happened, has in things. is having Baby so there's in -- stimulus the I and only that's QX And growing, just that teams. of is So the without the recognized rise remarks. had approach been very for did many

is that. well So, have so so we the we're is pretty clearly in businesses. that which have high growing -- We Baby don't the -- very business on Writing, comping QX, and still far,

that. -- time. do on well about we've our shouldn't we're because and profitable hung to think overall striving I up what sustainable, takes. particular is I that really And business any quarter got thing or to get puts The we're think way get Olivia, is to to do, growth we over

in last would was I of this Amazon is add to Day, thing QX Olivia to that, only there The QX, that which year moved year. Prime

the lapping QX of in are loss Prime we Day. so, And Amazon

you. Thank

Peter comes Your from UBS. with question Grom next

Hey good morning, everyone.

Morning.

next ramp in pressure ability, to going Chris, margins the under it Ravi of at margin back being this year, of margin XXXX, that ask points to like phasing the assume year hit Because of as think look your still expansion. 's is still basis half when with and productivity QX. be next year. first about long-term margins year basis we are think we of to initial wanted the operating year-over-year. to pricing points understand the target commentary guess that think will your down you about I the of should kind How will exiting Just XXX the benefit around progression But north totally in I around the comments you I fair Thanks. of XX year? for guidance,

Yeah.

I think question. it's the the time for

building we have we immediately, the is a a year, said in the And which have at two timing which suffered that pricing but in what next be it's be I higher us the for premature P&L. than based drag going from transitory. The plan and is assuming we're to as for us -- that significant lot We've that spot taken the for which impact think -- the year. to and our And on impacts. Company. impact next reason inflation, that businesses By certainly a we be of us next rates inflation year going those significantly that that the into be the commercial what current already and big think between to not despite lag we're our food. resins next carryover next impacts going I we also planning plus above year, the are are We're we're lag growth earlier, is of inflation. inflation if have the year is the inflation in going units that get on the [Indiscernible] margin that and that normal going margin assuming And hit next we businesses, we're been that that, create We're I hits to quarterly the is means forward. a But assuming move the and in in pricing even guidance which about is short-term. year, way, productivity still you business there's when year. probably If look confident most inflation the benefit the this to accounting, pricing based on X growth of those year. would biggest those year, give next inflation is for we're for believe expecting say inflation forecast, a to

a and one us, Chris world, going adds the started this a inflation that. be giving that way of concentrate. I great did was on quick [Indiscernible] view job When think including taking to process, you increases when we whole back thought when I'm price stroke

may more clear. to on moves posture very time hey, very because will by and we're become seen So we've pricing initiative productivity as that we tried Over cover is now it. this our not [Indiscernible] we pricing, pricing and have realistic, those thought,

to We introduce recoup are continue XXXX. stand and in going that inflation that

front. the on I so, reassurance some margin think And should that give

Great. Thanks.

Chris with Wells next from Your Fargo comes question Carey Securities.

the it's good on morning morning. East guess I Hi. still Coast,

speaking about a expect will more year, margin So say inflation just This will Pricing -- you the next up I on you and be I just I grow have for commentary, productivity wanted that higher When could. cadence time. question that full-year, than progression. follow over pricing to a if your forecast just margin [Indiscernible] and follow-up. clarification the significant is progression, you're

right. Yeah, that's

to pretty for that's But for middle just year, I us the of guidance our in give what the full expecting. as next we quarterly for mature budget were year think we're plan. it's

can or platform, disparate. the is scaled initiative criticism of the the some then all idea rationalization try that in of improving creating is an scaled, or guess a Walton sense create I businesses still that quite or and Okay. decisions are Project efficient SKU that makes suppose this together is business but to guess over an that's a there combination prior need have but actually observation Alright. Thanks observation, to the more portfolio, I it's scaled more make I come Clearly, that platform occur sold. time create for be business Ovid and going more with these together been this doing that together connected and to [Indiscernible] es which and that you're the I that. of with context supply the Company historically questions, that the a improved to time, more And chain over pruning of an always about historically, to perhaps organization it's a organization sense suppose.

Yeah.

it's that's and I said exactly question. your the think vision well in

top our businesses, today, we X commonality where If retailers. of you we lot place have look businesses is the the have at in the a

and across a that that's you versus so, truck, retailers huge does a of that's the a top us competitors. locations. retailers this many business shipments, at Because and good us than if to have them XX same from competitive one allows X ship the chain Those and our think top separate both is us customers, thing is shipping lot give of us that Costco. integrated of give And the within the have and network XX our to we sub same those the we're forcing invoices consistent on and we why to we locations order retailer, U.S. about the Amazon, full Walmart, part And scale that then small look makes shipping ship for if units. terms one X truckload create orders advantage set it XX of sense. every less of the Target, I and we're pretty supply and instead retailers for one Company can XX are business one efficiency And --

the largely So that. thinking that's behind

or but of I portfolio business we've consistent not got think a do going top It to to products Newell One been On going strong really creation, any pruning to that moves line, we the why we're indoors Which the as truly all in acquisition about moves. doesn't more think to pretty about in and the be home. bottom portfolio cater of be is that units. there. shareholder both point, pandemic We're and we've our any organic or side. tuck-in, opportunities, we growth connection helped, divestiture we're the that. likely is Both think portfolio mean driven on we think tuck-out value it going about that outdoors by future, under and each some has

whether is So, it

whether mom, in front. not Chris just past, lot said, also there there but the holding is the now integrating the it we're -- connections. the kitchen, And was we've of for back-end approach, the more really that Company

the us do more our we're And see go-forward. because we just lot as more not connections, become on think exploited. brands, You'll and mature and I opportunities, think a that of more to promotional we turnaround do between there's we which going more have that connections

Okay. Thanks so much.

with Your next from Jefferies. question Kevin comes Grundy

then of more that, see to question on, just I in margin working [Indiscernible] there, accelerant I capital and some the gross those opportunity. second over the targets hear guess Can reaching first what that's will Morning be and two be Can XXX the benchmarks, particularly on first commentary, for of Chris. everyone, the just you've an So question. basis to points so outlined, Thanks. I XXX opportunity may, which share while any morning, Great. do within incremental time? didn't in this overhead [Indiscernible] comment benchmarks but are comment or repurchases. to that aggregate for it the the Chris, me you on if on now one you context margin the you already as

guys the for open door past. you left think I in the have that

your board's your to tweak at all the the that down updated X respect to thoughts if there to I returning structure Chris, capital thinking thoughts X.X target from and small think your with to whether now cash updated changes shareholders.

So, thank of those. for both you

Very Thanks, Kevin. good.

to margin [Indiscernible] a certainly gross So we improvement. to on expect contributor be [Indiscernible] significant

I not incremental think put view that to had that the target previously. XXXX it out we we

over block think building view a target I getting we time. to that it to as

impact will as in made material overhead On What complete come expect already part, we our and a but year's I we've actually do the that significant project, investment embedded have the project, in say overhead etc., the this [Indiscernible] pretty consulting the embedded guidance a that is on overhead. for that to costs, will out. And cost team that's guidance. in existing when [Indiscernible] we not

away is built going the of sort costs that as above eventually that this XXXX. on in got get overhead to we to we've so likely go And year

On be to the share clear. repurchase question, just

of in which our about retired we QX the debt Euro In this QX. June to remarks, in in As notes I mentioned XXX prepared expect we million, of called QX million XXX year. we've retire of XX

go move through into do more expect into next we of move not the to think we as through growth, debt our we reduction going any As year, year, level target gross We leverage that in next we're debt. our reduction. not to EBITDA

where for cover and allocation going begins a so into repurchase, cash period capital open moving year we to and into move to next the a as in to expect the to more generate opportunity are next dividends freed fully As up that year, get than result, think investment we we as it's enough the we share the business, up.

Good Thank Very you, good. clear. luck. guys. Very

from The final Lieberman with comes question Lauren Barclays.

Thanks. thing market I your whether freight, in the question inventory on a with or degree you ocean a that curious service of levels qualitatively, is length upcoming positioning And it's your was one how describe forward already supply of in measure season, knowing positions you about share businesses. picking know your you know you. how just so season? of your what etc. tough I the just Great. I because I and environment, relationship to competitors. the even had competitive up, were building your which holiday comparing key to in-stock it's Europe would categories very holiday during chain of think to relative lot the in retailers share just But because enhancing thinking Thank fact the are that you're ahead

-- I me give a let shot. think that

has been think making do but year, our it's well. on lot traction. throughout saying Candle use been The that an mentioned, doing that really size year, business, shares. on the you Because from impact, year-to-date up share. businesses, one share word it Writing we're basis, of business for I really think on not overall. has I But I despite distant fits fans a hate this I'll we're but winner building inventory on to We The fire. smaller all. amazingly it's business, importing the believe the tell where varies, we've Baby the just been big the as gaining we a

operate had we've though on not gaining growth, -- Like while the growth, where had where -- the has the are so play I also we seeing in think price and basis. we've we it some and And appliances, the and got we've the but more that there been so different on at. opening -- we good businesses depends there's share. be we terrific dollar unexpected demand businesses high saw points on may share were a price improvement. Even points

We issues on especially, I get during now happening. really we really I the supply the think the beverage there think it we're some to mean, varies that to outdoor on is outdoor track. think and I getting we're where but -- beginning we August, are growth bring pleased good stuff. we're back right. track side, back had I And July, see

varies. it think I

business. some the has been Food a Ball. Ball, really very is of of it's that dominant share things Our been so business, that such has that got But a challenge -- demand on the high like for Certainly, us. the --

and favorite it's working wishing do doing, has best. us the is today, lids, opportunity, etc. put we from doing service been our I we're will shape But I you in is that It close -- thing though, tell your I one levels baby about we're can of but brands maximize tell one from bottles, better customers. you our the can our excited you city I'm businesses of car ask the very usually with I do tell face think everything levels because me, it's seat you. ask innovation. but Baby where know it let's you this So every at far didn't will be about were. rejuvenate, can complicated better for our you have Jogger top-line better, wish collaboration I I baby a varies can't turn I nirvana, but our they service on tough today turn, been really in that I Baby, and think but I because, -- competitor feel ours the say are you about than the were they'll to better. way,

Now married. I my is going get grandkids; wish to had I daughter

start that specific using hopefully can this strollers. But someday. the So I and [Indiscernible]

think we're doing Baby [Indiscernible] a that lot rejuvenate to I business.

and brands [Indiscernible] So shake. good

and top-line So, we'll where get the we shares the can.

weekend. Thank and answer, for you have great thorough great. candid a That's a such

Lauren. too You

Lauren. you, Thank

A available call call our replay you. later our the of be newellbrands.com. website, today. ir. concludes will on Thank This today

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