Key Takeaways
- Acco Brands’ Q1 2025 sales decreased by approximately 12% year-over-year.
- The company achieved a gross margin expansion of 60 basis points despite declining sales.
- Acco’s stock price fell over 5% in premarket trading following the earnings announcement.
- The company is executing a $100 million multi-year cost reduction program.
- Acco Brands is expanding its product lines to support hybrid work environments.
Acco Brands Corporation (ACCO) reported a decline in sales and mixed earnings performance in Q1 2025, with an actual earnings per share (EPS) of -$0.02, surpassing the forecasted -$0.05. Revenue slightly missed expectations, coming in at $317 million, despite a forecast of $318.05 million.
Despite the earnings beat, Acco’s stock fell 5.18% in premarket trading to $3.66, reflecting investor concerns over broader market challenges and future guidance. The company’s gross margin improved by 60 basis points, indicating effective cost management.
The decline in sales is attributed to soft consumer and business demand globally, particularly in the gaming accessories market, which saw a 20% downturn. InvestingPro data shows the company maintains a healthy current ratio of 1.49, suggesting strong ability to meet short-term obligations.
Acco Brands refrained from providing full-year guidance due to tariff uncertainties. For Q2, the company expects sales to decline by 8-12% and adjusted EPS to range between $0.28 and $0.32. The company is focusing on modest sales growth and maintaining a gross margin of 33-34% in the long term.
CEO Tom Tedford emphasized the company’s strategic positioning, stating, “We are uniquely positioned to accelerate our sourcing to lower-cost countries.” CFO Deb O’Connor highlighted the company’s financial stability, noting, “We have a strong balance sheet with no debt maturities until 2029.”
Source: Investing.com
Source: ACCO
