Klaus Vedfelt
Thesis
As I mentioned previously, the odds between the Bull and Bear case for Newell Brands (NASDAQ:NWL) is 50/50, and the share price action since February seems to indicate that the bear case is right (catching a falling knife). From a purely objective standpoint, I believe 1Q23 results vindicated the bear case. The fact is the results were not great at all. NWL’s net sales dropped by 24% year over year in 1Q23, and core sales dropped by 18%, both of which were below management’s guidance range. The 1Q23 EPS of -$0.06 was also below expectations. However, I also think that the results were not super negative as it did come within the guided range. In addition, management has reaffirmed FY23, which suggests an accel…
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