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Newell's (NWL) NUK Launches Sustainable Baby Collection

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Newell Brand Inc.’s (NWL - Free Report) NUK brand launched its first sustainable baby collection, NUK For Nature. The product line will offer pacifiers, cups, plates, bowls, and baby utensils made of 100% recycled fibers with recycled paperboard packaging. All products also contain instructions on how to dispose of them sustainably. The collection is now available in stores and online at Target.

The orthodontic pacifiers come in a pack of two, with a reusable pacifier storage case. These are made up of plant-based plastic, using green electricity from renewable sources as part of NUK’s efforts to reduce energy consumption. The orthodontic pacifiers and the COMFY Silicone Pacifiers are priced at $6.99 and $5.99, respectively.

Meanwhile, Everlast Cups Hard Spout and Everlast Cups with Weighted Straw are available at $8.49 each. The Suction Plate + Lid, Suction Bowls + Lids and Pretensil Training Set are priced at $6.99, $8.29 and $5.99, respectively.

What Else Do You Need to Know?

Newell Brand has been gaining from solid demand, product innovation and robust core sales growth. In fourth-quarter 2021, net sales grew 4.3% year over year, driven by core sales growth of 5.8%, as six of the eight business units and each key region witnessed higher core sales. This marked the sixth successive quarter of core sales growth. On a two-year basis, core sales witnessed growth in every business unit.

The company is witnessing continued online strength, backed by the buy online and pick up in stores, and ship from store services. As a result, the e-commerce business witnessed low-double-digit sales growth, accounting for nearly 22% of total sales in 2021.

Healthy consumption trends in the United States also bode well. This marked the seventh straight quarter of consumption growth. Domestic consumption increased across all eight business categories on a two-year basis, with double-digit growth in Writing, Food, Baby, Commercial, Home Appliances and Home Fragrances. Robust momentum in domestic consumption for the Baby business and Connected Home & Security remained upsides. The healthy consumption trend is likely to contribute to top-line growth in 2022.

Driven by the above-mentioned factors, management issued an upbeat view for the first quarter and 2022. The company anticipates net sales of $9.93-$10.13 billion for 2022, with core sales of flat to up 2%. The normalized operating margin is expected to be 11.5-11.8%. Normalized earnings per share are forecast to be $1.85-$1.93 for 2022. For first-quarter 2022, net sales are envisioned to be $2.25-$2.30 billion, with core sales growth of 2-4%. For the quarter, the company expects a normalized operating margin of 8.9-9.3% and normalized earnings of 26-28 cents per share.

 

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Consequently, shares of this Zacks Rank #3 (Hold) gained 4.8% in the past three months against the industry’s decline of 13.2%.

How Better-Ranked Stocks Fared

Some better-ranked stocks in the Consumer Staples sector are Inter Parfums (IPAR - Free Report) , Nomad Foods (NOMD - Free Report) and Flower Foods (FLO - Free Report) .

Flower Foods currently has a Zacks Rank #2 (Buy). FLO has a trailing four-quarter earnings surprise of 9%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Flower Foods’ current financial-year sales and earnings suggests growth of 7.2% and 4%, respectively, from the year-ago period’s reported figures.

Inter Parfums currently has a Zacks Rank #2. IPAR has a trailing four-quarter earnings surprise of 29.7%, on average.

The Zacks Consensus Estimate for Inter Parfums’ current financial-year sales and EPS suggests growth of 63.2% and 117.4%, respectively, from the year-ago period’s reported figures.

Nomad Foods currently carries a Zacks Rank #2. NOMD has a trailing four-quarter earnings surprise of 16.3%, on average.

The Zacks Consensus Estimate for Nomad Foods' current financial-year sales and earnings suggests growth of 7.5% and 6.6%, respectively, from the year-ago period’s reported figures.

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