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Sep 30, 2022
ACCO Brands Q3 2022 Earnings Report
ACCO Brands' Q3 2022 results were in line with the October 13th update, with strong North America back-to-school sell-through offset by cautious retailer inventory replenishment and a challenging European demand environment, while the International segment delivered excellent growth.
Key Takeaways
ACCO Brands reported a 7.8% decrease in net sales to $485.6 million, with a net loss of $68.7 million, primarily due to a non-cash goodwill impairment charge. The International segment saw double-digit sales and profit growth, while North America experienced strong sell-through offset by lower retailer inventory replenishment. EMEA was impacted by the European energy crisis and inflation.
Achieved solid North America back-to-school sell through; Five Star outperformed the market
Realized double-digit sales and profit growth in the International segment, led by Latin America
Implemented multiple cost and pricing actions to improve margin profile
Generated $88 million in cash from operations; adjusted free cash flow of $84 million
Forward Guidance
The full year outlook reflects a moderating demand environment for the remainder of the year, continuing cost inflation, and adverse foreign currency exchange. However, the Company anticipates sequential gross margin improvement in the fourth quarter, as its pricing and cost reduction actions further mitigate the impact of cumulative inflationary cost increases.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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