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Co sees tariff costs of $180 million, up from $155 million

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CEO flags pressure on low-income shoppers, weak general

merchandise demand

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Shares hit 38-year low

By Neil J Kanatt

Oct 31 (Reuters) - Newell Brands' ( NWL ) shares slumped

as much as 34% on Friday after the Sharpie maker forecast a

wider decline in annual sales than previously expected and cut

its profit outlook, anticipating a hit from tariff costs and

sluggish demand.

The company has been trying to minimize the impact of U.S.

import tariffs by reducing its reliance on Chinese suppliers as

well as price hikes, but has seen a pushback from

budget-conscious shoppers seeking cheaper alternatives.

"The pricing that we put in the market turned out to

position us as being uncompetitive," CEO Chris Peterson said on

a post-earnings call, adding that low-income consumers remain

under pressure, with spending on general merchandise down

sharply.

The company makes discretionary products, such as storage

boxes, candles and baby gear.

Newell's shares fell to a 38-year low of $3.09 and were on

track for their worst day on record, if losses held. They were

down 52% this year as revenue has been declining for several

consecutive quarters.

The company now expects annual net sales to decline between

4.5% and 5%, compared with its previous forecast of a 3% to 2%

fall. Adjusted profit per share is seen at 56 cents to 60 cents,

down from 66 cents to 70 cents earlier.

Newell raised its expected tariff costs for the year to $180

million from $155 million, citing higher import volumes from

China following a shipment pause and a hike in steel and

aluminum tariffs to 50% from 25%.

For the third quarter, it reported a bigger-than-expected

fall in sales, hurt by lower retail inventory levels and softer

consumer spending amid price hikes.

"Timing mismatch from a pricing standpoint (competitors that

import from China are only now taking pricing) and inventory

destocking was a double hit this quarter," J.P.Morgan analyst

Andrea Teixeira wrote in a note.

(Reporting by Neil J Kanatt in Bengaluru and Jessica DiNapoli

in New York; Editing by Shinjini Ganguli)