Newell Brands’ writing segment saw a core sales decline in its latest quarterly results.

 

Third quarter revenue for Newell’s writing division was US$454 million compared to US$510 million in the prior year period. 

 

However, the decline was against a tough double-digit comparison and was impacted by a shift in customer order timing to the first half of 2022 ahead of back-to-school (BTS) orders.

 

Newell said the business unit performance also reflected logistical constraints and supply chain shortages, particularly in labelling, along with softening demand in certain categories in the US, partially offset by pricing actions.

 

Focusing on the year-to-date performance, core writing sales have increased in the low single digits. During the BTS season, the category grew modestly as the strong start was followed by a slowdown at the end period. 

 

On the earnings call, CEO Ravi Saligram said the division “held its ground” despite supply constraints across several categories, including mechanical pencils, ballpoint pens and highlighters.

 

Referring to the office channel, Saligram said it had seen steady growth as the return to the office continues. He added that, in addition to normal line extensions, Newell would look to create a group within the business unit to look at

“breakthrough innovations, whether it’s digital or with the whole new world of the metaverse, etc”.

 

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