ACCO Brands (ACCO) Q1 2025 earnings summary

Executive summary

• Net sales declined 11.6% year-over-year to $317.4 million, driven by weak global demand for office and gaming products, partially offset by growth in computer accessories.

• Gross margin improved by 60 basis points to 31.4% due to favorable mix and cost savings, despite lower sales.

• Adjusted loss per share was $0.02, outperforming outlook; reported loss per share was $0.14.

• $15 million in share repurchases and a small strategic acquisition in Australia/New Zealand were completed.

• Free cash flow was $3 million, with net debt reduced by $35 million year-over-year.

Financial highlights

• Net sales: $317.4 million, down 11.6% year-over-year; adverse FX impacted sales by $11.7 million.

• Gross profit: $99.6 million, down 9.8%; gross margin 31.4% (up 60 bps).

• Adjusted operating income: $6.9 million, down from $16.2 million a year ago; operating loss was $6.7 million vs. $5.9 million income last year.

• Adjusted EBITDA was $20.9 million, down 26.1% year-over-year.

• SG&A expense was $93 million, lower than prior year due to cost reductions.

Outlook and guidance

• No full-year 2025 guidance provided due to tariff and demand uncertainty.

• Q2 2025 sales expected to decline 8–12% year-over-year; adjusted EPS guidance is $0.28–$0.32.

• Long-term targets include modest sales growth, gross margin of 33–34%, and consistent cash flow.