Tuesday, February 27, 2024
ACCO Brands Corporation is one of the world’s largest designers, marketers and manufacturers of branded academic, consumer and business products. Our widely recognized brands include AT-A-GLANCE®, Esselte®, Five Star®, GBC®, Kensington®, Leitz®, Mead®, PowerA®, Quartet®, Rapid®, Rexel®, Swingline®, Tilibra®, and many others. Our products are sold in more than 100 countries around the world. More information about ACCO Brands, the Home of Great Brands Built by Great People, can be found at www.accobrands.com.
Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Setting the Table. ACCO management had laid out a number of key priorities at the beginning of 2023 to set the Company on a path of sustainable, profitable growth. The key elements of the program were achieved. Gross margin improved 428 basis points y-o-y, restructuring efforts are right-sizing SG&A and the facility footprint, inventory was reduced by $68 million, and strong FCF enabled debt to be reduced by $88 million.
But Top Line Challenges Remain. Comparable revenue fell 6.5% y-o-y. Weak computer and gaming accessory sales, lower than expected “return-to-office” trends, and tight inventory management by customers all impacted the top line. We expect a number of these challenges to reverse course in 2024, although the pace will be measured and likely benefit 2H24.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.