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Newell Brands Inc. NWL appears well-poised for growth on the back of its robust business strategies. Management has been evaluating opportunities to optimize the category mix and drive growth within each business unit. NWL’s corporate strategy is also quite encouraging.
Detailing Newell’s Strategic Efforts
The company has been executing NWL’s new corporate strategy, which aims at investing in innovation, brand-building and go-to-market excellence across its profitable brands and markets. It also focuses on achieving standardization and scale efficiencies within the supply-chain and back-office functions.
In addition, the company has transitioned into a new operating model, designed to accelerate the new strategy by driving organizational effectiveness and agility apart from developing a high-performing and innovative culture. Newell is making progress in its business development, enhancing the company’s brand's distribution. Its International business continues to be a key growth driver.
Newell’s organizational realignment is likely to strengthen its front-end commercial capabilities, including consumer understanding and brand communication. Apart from improving accountability, the Realignment Plan will unlock operational efficiencies and cost savings, lower complexity and free up funds for reinvestment.
Newell has been strengthening its front-end commercial capabilities through consumer-driven innovations. The company will continue to make brand investments and 360-degree support for new MPP HPP propositions, comprising Graco's SmartSense Soothing Bassinet and Swing, which detects and responds to babies’ cries in seconds with a suing sound in motion. Such innovations are likely to bolster sales and overall profitability.
Bumps in NWL’s Growth Trajectory
Newell has been witnessing a challenging macroeconomic environment. Unfavorable foreign currency impacts and muted demand for discretionary products also remain as concerns.
The company has been struggling with sluggishness in its Outdoor & Recreation segment for a while now. In the third quarter of 2024, the segment’s net sales declined 20.8% year over year and core sales fell 16.8%.
Conclusion
Nevertheless, Newell’s aforesaid strategic initiatives will continue to deliver growth ahead. Pricing in the international markets to offset inflation and currency translations has been a key contributor to core sales. In the past three months, shares of this manufacturer and marketer of consumer and commercial products company have risen 31.9% against the industry’s 4% decline.