- Avery Dennison (AVY -3.4%) reports Q1 sales declines 2% to $1.7B, with overall gross margin compresses 45bps to 26.7%; reports net loss of $147M as compared to income of $125M.
- Label & Graphic Materials segment sales of $1.2B is down 3% Y/Y on reported basis and +1.4% on organic basis; adjusted operating margin declines 50bps to 12.5%.
- Retail Branding and Information Solutions sales increase 3.2% to $398M (+7% on organic basis); adjusted operating margin expands 220bps to 12.4%.
- Industrial and Healthcare Materials organic sales declines 1% on organic basis and 5% on reported basis to $163.5M, however operating margin expands 200bps to 9.5% through increased productivity.
- For 2019, the company has increased its reported EPS guidance to $3.10 to $3.35, reflecting lower-than-expected costs to settle its U.S. pension plan liabilities, and reaffirms adj. EPS at $6.45 - $6.70.
- Previously: Avery Dennison beats by $0.03, misses on revenue (April 24)