ACCO Brands Corporation reported financial results for its second quarter and six months ended June 30, 2025. The company reported net sales and adjusted EPS in line with its outlook, with trends improving sequentially throughout the quarter. The company continues to make progress on its multi-year cost reduction program, realizing more than $40 million in cumulative cost savings since the plan’s inception. ACCO Brands’ President and CEO, Tom Tedford, stated that sales in the third quarter will moderately improve as economies stabilize and benefit from the weakening dollar.
Net sales were $394.8 million, down 9.9% from $438.3 million in 2024. Favourable foreign exchange increased sales by $2.6 million, or 0.6%, while comparable sales decreased 10.5%. Sales in the quarter were negatively impacted by disruptions in purchasing as tariffs were announced, and the decline in net sales also reflects softer global demand for consumer and business products, partially offset by growth in gaming accessories.
Operating income was $33.0 million versus an operating loss of $111.2 million in 2024, primarily due to non-cash impairment charges of $165.2 million related to goodwill and intangible assets within the Americas segment. Restructuring expense of $9.4 million compared to $0.3 million of reserve release in the prior year.
Current-year operating income benefited from a gain on sale of assets of $6.9 million. Adjusted operating income was $47.1 million compared to $64.6 million in 2024. The decline in adjusted operating income reflects lower sales volume and lower fixed-cost absorption, which was partially offset by cost savings and lower incentive compensation expense.
Net income was $29.2 million, or $0.31 per share, compared with the prior-year net loss of $125.2 million, or $(1.29) per share. Both the current and prior year results reflect the items noted above in operating income. Current year net income was positively impacted as the Company settled outstanding tax assessments in Brazil, resulting in a net discrete tax benefit of $13.4 million. Adjusted net income was $25.8 million compared with adjusted net income of $36.6 million in 2024, and adjusted earnings per share were $0.28 compared with $0.37 in 2024.
In the business segment, ACCO Brands Americas experienced a decrease in net sales of $248.5 million from $292.3 million in the prior year, while ACCO Brands International saw a decrease in net sales of $146.3 million from $146.0 million in the prior year. Comparable sales declines reflect reduced demand for certain business products, partially offset by price increases and the acquisition of Buro Seating, as well as growth in gaming accessories.
Six-month results showed net sales were $712.2 million, down 10.7% from $797.2 million in 2024. Adverse foreign exchange reduced sales by $9.1 million, or 1.1%, and comparable sales decreased 9.6%. Net sales declines reflect the impact from tariff announcements and softer global demand for consumer and business products and technology accessories categories.
Source: ACCO Brands
Source: Yahoo Finance
Source: Investing.com
