ACCO - ACCO Brands cuts annual outlook amid macroeconomic pressure

ACCO Brands ( NYSE: ACCO ) has lowered its full year outlook to reflect a more challenging than anticipated operating environment.

Full year 2022 net sales are now estimated between $1.94B to $1.98B vs. consensus estimate of $2.03B, compared to $2.015B-$2.055B previously. Comparable sales growth is projected between 0.0% to 2.0% vs. 4.0% to 6.0% previously.

The company is expected to earn between $1.05 and $1.10 per share on an adjusted basis (consensus: $1.40), compared to $1.39 and $1.44 previously.

Management comment: "Due to the macroeconomic trends, we are providing a third quarter outlook and lowering our full year 2022 outlook to properly account for reduced channel inventory replenishment, a weaker end-user demand environment, especially in Europe, continued high inflation and adverse foreign exchange impacts."

For Q3, net sales is seen at $480M-$490M ( consensus : $519.53M), with comparable sales decline of (3%) to (2%). Adjusted EPS is estimated between $0.23 and $0.25 vs. $0.40 consensus.

In addition, the company anticipates taking a yet to be finalized non-cash goodwill impairment charge in the quarter.

ACCO Brands ( ACCO ) will report its third quarter 2022 earnings after the market close on Nov 7, 2022.

Shares were down over 4% premarket

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