ACCO Brands reported QQ3 2024 revenue of $420.9 million, down 6% year over year and down 3.97% quarter over quarter, with a gross margin of 32.5% and an adjusted operating income of $45 million. Net income was $9.3 million and diluted EPS stood at approximately $0.10 for the quarter. Management emphasized the ongoing cost-reduction program, footprint rationalization, and supply-chain enhancements that are translating into improved service levels, lower inventories, and a smaller fixed footprint. The company also highlighted a refreshed liquidity position following the refinancing of its credit facilities to 2029, with revolver availability of $569 million, and a leveraged balance sheet improved to a 3.5x net debt/EBITDA ratio.
Strategically, North America Back-to-School dynamics remained challenging due to retailer conservatism and lighter replenishment orders, though sell-through of Five Star and Mead maintained brand leadership. International results benefited from Technology Accessories growth (including Kensington and PowerA adjacencies) and new ergonomic/business-machine product launches that helped offset declines in other office categories. The Q3 trend suggests a gradual stabilization, with Computers Accessories posting two consecutive quarters of growth and continued expansion in non-traditional channels.
Looking ahead, ACCO reiterated its full-year 2024 guidance: revenue down 8% to 9% and adjusted EPS of $1.04 to $1.09, with free cash flow around $130 million and a target leverage of ~3.2x by year-end. Management signaled a continued cost-optimization program into 2025, potential further efficiency opportunities beyond the normalized productivity program, and a disciplined, opportunistic stance on M&A aligned with shareholder value creation. The cash-rich, low-debt-light balance sheet, combined with improving gross margins and disciplined capital allocation, supports a constructive longer-term investment thesis, albeit with near-term revenue headwinds tied to secular shifts in office work patterns and the broader office-supplies cycle.