Post-earnings recap
Reported
Tue, Jul 22, 2025
EPS actual
$2.42
EPS est.
$2.39
EPS surprise
+1.09%
1-day move
+1.49%
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Est. EPS
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Est. Rev
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Impl. Move
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Avery Dennison's earnings report shows a slight beat on EPS, which contributed to a 1.49% increase in stock price. Despite a decline in organic sales, particularly in apparel, the company demonstrated strong cash flow and continued commitment to returning value to shareholders. The cautious outlook for Q3 reflects ongoing challenges in the retail environment.
| Metric | Actual | Expected | Surprise |
|---|---|---|---|
| EPS | $2.42 | N/A | +1.09% |
| Adjusted EBITDA Margin | 16.6% | N/A | +20 bps |
| Adjusted Free Cash Flow | $190 million | N/A | N/A |
| Quarterly Dividend | $0.94 | N/A | N/A |
Management acknowledged challenges in the apparel sector but highlighted strong cash flow and shareholder returns. They remain cautiously optimistic about future performance.
Organic sales declined 1% in Q2 2025, with apparel sales down 6%.
Management expects continued low single-digit declines in Q3.
We returned $500 million to shareholders in the first half of 2025.