02:05 PM EDT, 08/01/2025 (MT Newswires) -- Newell Brands ( NWL ) shares tumbled intraday Friday after the company issued a downbeat guidance for the third quarter and lowered its full-year earnings outlook.

The maker of consumer and household brands such as Sharpie and Rubbermaid expects third-quarter normalized earnings of $0.16 to $0.19, below the FactSet-polled consensus of $0.27. The company projects sales for quarter to fall between 2% and 4%. Analysts expect third-quarter sales of $1.90 billion, down from the year-earlier quarter's $1.95 billion.

For full-year 2025, Newell Brands ( NWL ) now expects normalized EPS between $0.66 and $0.70, compared with a previous guidance range of $0.70 to $0.76. Analysts polled by FactSet expect $0.70, which would be up from the previous year's $0.68.

The stock was down nearly 17% in afternoon trade.

The company now expects full-year sales to fall between 2% and 3%, compared with its previous expectation for a 2% to 4% drop. Analysts are projecting full-year sales to decline to $7.36 billion from the previous year's $7.58 billion.

"We are updating full year 2025 financial projections to reflect a number of factors," Chief Financial Officer Mark Erceg said at an earnings conference call, according to a FactSet transcript. "First, what we believe to be short-term category softness due to temporary consumer pullback in discretionary categories as consumers and retailers remain focused on food and everyday essentials."

The updated outlook also takes into account "the positive progress we are making on tariff-related relative sourcing advantage or tariff-free inventory business wins," he told analysts.

In addition, the guidance reflects the impact of tariff costs and mitigating efforts, he said. The company is estimating incremental cash tariff costs of about $155 million in 2025 compared to 2024. Of that amount, $105 million will impact gross profits.

The White House on Thursday issued a list of reciprocal tariffs on different countries, ranging from 10% to 41%.

Normalized EPS for the second quarter ended June 30 fell to $0.24 from $0.35 a year earlier, in line with the consensus. Sales dropped 4.8% to $1.94 billion, below the $1.95 billion projected by analysts.

The results were "largely driven by category softness related to consumer pullback and retailer actions," Chief Executive Chris Peterson told analysts on the call. "We are confident that core sales during the back half of 2025 will improve sequentially versus the first half of the year, and that broadly speaking, Newell's turnaround story is pacing well."

Price: 4.67, Change: -0.95, Percent Change: -16.84