Newell Brands Inc. (NASDAQ:NWL) Q2 2020 Earnings Conference Call - Final Transcript
Jul 31, 2020 • 11:00 am ET
Good morning, and welcome to Newell Brands' Second Quarter 2020 Earnings Conference Call. [Operator Instructions]
I will now turn the call over to Nancy O'Donnell, Senior Vice President of Investor Relations. Ms. O'Donnell, you may begin.
Thank you, Emma. Good morning, everyone. Welcome to Newell Brands' second quarter earnings call. Joining me today are Ravi Saligram, our President and CEO; and Chris Peterson, our CFO and President, Business Operations. Before we begin, I'd like to inform you that during the course of today's call, we will be making forward-looking statements, which involve risks and uncertainties. Actual results and outcomes may differ materially. I refer you to the cautionary language and risk factors available in our press release and our forms 10-K and 10-Q for a further discussion of factors affecting forward-looking statements.
Please also recognize that today's remarks will refer to certain non-GAAP financial measures, including those we refer to as normalized measures. We believe these non-GAAP measures are useful to investors, although they should not be considered superior to the measures presented in accordance with GAAP. Explanations of these non-GAAP measures and reconciliations between GAAP and non-GAAP measures can be found in today's earnings release and tables as well as on the Newell's Investor Relations website.
Thank you. And now I'll turn the call over to Ravi.
Thank you, Nancy. Good morning, everybody, and welcome to today's call. I hope that everyone has continued to stay healthy and safe in these extraordinary times. Since the outbreak of COVID-19, Newell has taken decisive action to manage our business effectively through this crisis. We entered the second quarter with three key priorities that we've been diligently executing against to position our company for long-term success while managing through unprecedented short-term conditions. Our key priorities remain as follows: first and foremost, we are focused on ensuring the safety and well-being of our employees; secondly, we have prioritized keeping our manufacturing and distribution facilities open where possible; and lastly, our energy has been directed to ensuring business continuity and sustaining the company's financial vitality with a laser focus on maximizing cash flow and ensuring strong liquidity. As the measures put in place to address these key priorities were successfully implemented, we pivoted to accelerating and executing our turnaround plan faster to position us to win in a recessionary environment.
As the results we announced today demonstrate being agile and nimble and acting decisively behind a clear set of objectives has enabled us to deliver a much better-than-expected outcome in the second quarter, a period during which the U.S. economy contracted the most in first quarter history and experienced ongoing global macro volatility and pandemic-related challenges. While not back to break yet, second quarter core sales have performed significantly better than we expected going into the quarter. We are encouraged by the significant improvement we have seen in sequential core sales performance each month. April was the trough month, with sales down over 25%. May was better than April. And in June, the company actually