ACCO Brands Sees Sales Slump and Announces Restructuring Despite Margin Improvements
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Sales declined in Q4 and full year 2023 due to lower demand, especially for Kensington computer accessories and PowerA gaming accessories, but gross margins improved significantly through pricing actions and cost reductions.
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ACCO announced a major cost restructuring program targeting over $60M in annual pre-tax savings by late 2026, including consolidating supply chain operations and delayering the organizational structure.
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The company took a $90M non-cash goodwill impairment charge related to previous acquisitions, reflecting ongoing market challenges impacting the North America segment.
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Outlook for 2024 projects a reset year with sales down 2-5% but adjusted EPS comparable to 2023, and improved demand in the second half as economic growth resumes.
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Key 2024 priorities are optimizing the product portfolio, exiting low-margin businesses, focusing innovation on growth categories like computer and gaming accessories, and continuing to prioritize dividends and debt reduction.