LAKE ZURICH — ACCO Brands Corp. released an update to its fiscal year 2022 outlook, reflecting a more challenging than anticipated operating environment, the company said.
“Our North America segment saw better overall back-to-school sell-through for the season, positive return to office trends and improved brand positioning in the third quarter; however, these improvements were more than offset by retailers’ more cautious approach to inventory replenishment,” said Boris Elisman, chairman and chief executive officer.
Elisman said the energy crisis and persistent inflation in Europe has created a more challenging macroeconomic environment, negatively impacting sales and profits. “These factors offset double-digit sales and profit growth in our International segment,” he said.
The company is now projecting fiscal year net sales to be roughly $1.9 billion, down from its previous forecast of $2 billion.
“We have taken immediate actions to protect profitability and free cash flow by curtailing hiring, reducing inventory and limiting discretionary spending and capital expenditures,” Elisman said.