ACCO Brands reported a seasonally quiet QQ1 2025, with revenue of $317.4 million and a net loss of $13.2 million (-$0.14 per share). On a reported basis, sales declined 12% and were down 8% on a comparable basis excluding foreign exchange, driven by softer discretionary demand across consumer and business channels. Management highlighted a 60-basis-point gross-margin expansion driven by favorable product mix and ongoing cost-reduction actions, including more than $7 million of savings realized in the quarter as part of the $100 million multiyear cost-reduction program. The company continued to execute on its China plus one strategy to de-risk tariffs, temporarily building inventories and accelerating production outside China, while signaling price actions in North America to preserve margins. Despite near-term headwinds, ACCO remains focused on portfolio expansion (ergonomics and seating via ANZ acquisition, Switch 2.0 and other new products), channel expansion, and accelerated SKU rationalization to support medium-term margin targets.
Key Performance Indicators
Revenue
Decreasing
317.40M
QoQ: -29.17% | YoY: -11.56%
Gross Profit
Decreasing
99.60M
31.38% margin
QoQ: -35.95% | YoY: -0.60%
Operating Income
Decreasing
-6.70M
QoQ: -115.95% | YoY: -211.67%
Net Income
Decreasing
-13.20M
QoQ: -164.08% | YoY: -109.52%
EPS
Decreasing
-0.14
QoQ: -163.64% | YoY: -112.77%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue YoY -11.56%; QoQ -29.17% (per earnings metrics). Gross profit YoY -0.60%; QoQ -35.95%. Operating income YoY -211.67%; QoQ -115.95%. Net income YoY -109.52%; QoQ -164.08%. EPS YoY -112.77%; QoQ -163.64%. Free cash flow: $3.3 million. Net cash provided by operating activities: $5.5 million. Cash at end of period: $134.6 million. Consolidated leverage: 3.65x (covenant 4.5x). Long-term debt: $69.1 million; total debt: $125.5 million. 60% of sales outside the United States. Management targets gross margin of 33%–34% in the medium term, with ongoing cost controls and product innovation as primary drivers.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
317.40M
-11.56%
-29.17%
Gross Profit
99.60M
-0.60%
-35.95%
Operating Income
-6.70M
-211.67%
-115.95%
Net Income
-13.20M
-109.52%
-164.08%
EPS
-0.14
-112.77%
-163.64%
Key Financial Ratios
Gross Profit Margin
Fair
31.40%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
-0.02%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.04%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.01%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.02%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.76
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
High Risk
1.69
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-7.40x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
0.65x
Trading below book value, potential value opportunity or distressed
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