ACCO - ACCO Brands (ACCO) - Post Call Commentary

Hit the Reset Button. The major drag on 2Q results and full year guidance is PowerA. After a fantastic 2021, a lack of chips for consoles and a more normalized level of demand post-COVID resulted in PowerA sales declining in 2Q. ACCO's management also gave an updated full year projection for PowerA, for which sales are estimated to be down 10-15%, or about $25-$40 million, for all of 2022.Forex No Friend. The other major contributor to reduced guidance is forex headwinds. Forex is now expected to have a negative 4.5% impact on revenue for the year, up 200 bp from management's previous expectation. Outside of PowerA and forex, the rest of ACCO's business looks solid, although a significant economic downturn could change that view. Read More >>