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Newell Brands (NWL) Is Up 6.5% After Aggressive Cost Cuts And Store Closures Has The Bull Case Changed?

Simply Wall St · 4d ago
  • Newell Brands recently announced it will cut around 10% of its professional and clerical workforce and close about 20 Yankee Candle stores across the US and Canada, aiming for annualized pre-tax cost savings of US$110 million to US$130 million as part of its ongoing turnaround plan.
  • The decision underscores management’s push to reshape the cost base and sharpen focus on higher-return opportunities, moves that have been reinforced by supportive commentary from Canaccord Genuity after recent investor meetings.
  • Next, we’ll examine how Newell’s sizeable workforce reduction and related cost savings reshape the company’s investment narrative and risk profile.

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Newell Brands Investment Narrative Recap

To own Newell Brands today, you need to believe the turnaround can convert ongoing cost cuts and brand investments into sustainable profitability while managing high leverage and pressured demand for discretionary products. The latest workforce reduction and Yankee Candle closures support the cost-saving story, but do not materially change the near term catalyst of margin improvement or the key risk around weak core sales and elevated debt.

Among recent announcements, the December 2025 global productivity plan stands out as most relevant, since it frames this workforce reduction and the 20 Yankee Candle store closures as part of a broader effort to streamline Newell’s cost base. For investors, that ties directly into the catalyst of structural margin expansion and leverage improvement, while sitting alongside the risk that persistent category softness could still limit the benefits of these savings.

Yet beneath the cost savings story, investors should be aware of Newell’s elevated net leverage and what it could mean for...

Read the full narrative on Newell Brands (it's free!)

Newell Brands' narrative projects $7.6 billion revenue and $482.4 million earnings by 2028. This requires 1.0% yearly revenue growth and a $725.4 million earnings increase from -$243.0 million today.

Uncover how Newell Brands' forecasts yield a $5.05 fair value, a 28% upside to its current price.

Exploring Other Perspectives

NWL 1-Year Stock Price Chart
NWL 1-Year Stock Price Chart

Six fair value estimates from the Simply Wall St Community span roughly US$4.81 to US$19.97, showing how far apart individual views can be. Against that backdrop, the emphasis on aggressive cost savings as a key catalyst for Newell’s turnaround highlights why you may want to compare several perspectives before forming an opinion on the company’s future performance.

Explore 6 other fair value estimates on Newell Brands - why the stock might be worth just $4.81!

Build Your Own Newell Brands Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.