Avery Dennison warns on Q2

Avery Dennison beat first-quarter profit estimates on April 28, but its second-quarter earnings outlook pointed to slower near-term momentum. (morningstar.com) The label and materials maker reported adjusted earnings of $2.47 a share, up 7.4% from a year earlier, on net sales of $2.3 billion, up 7.0%. Organic sales rose 1.1%. (morningstar.com) (finance.yahoo.com) For the second quarter, Avery Dennison forecast adjusted earnings of $2.43 to $2.53 a share and reported sales growth of 2% to 4%, with organic growth of 0% to 2%. (morningstar.com) (seekingalpha.com) Chief executive Deon Stander said the company used productivity, procurement and cost management to offset inflationary pressure while keeping supply continuity. (morningstar.com) The quarter showed a split inside the business. Materials Group sales rose 11.4% to $1.6 billion, while Solutions Group sales fell 2.8% to $649 million. (morningstar.com) Within Solutions Group, Intelligent Labels sales were down low single digits, with apparel and general retail up low single digits and logistics down low double digits during a chip transition. (seekingalpha.com) A day before earnings, Avery Dennison said it would make a $75 million minority investment in Wiliot, expanding a partnership around connected tags and supply-chain tracking. (averydennison.com) Management said 2026 growth in enterprise Intelligent Labels should outpace 2025, but performance will be weighted more heavily to the second half of the year. (seekingalpha.com) That leaves investors balancing a solid first quarter against a softer second-quarter setup and a bigger bet on digital identification. (morningstar.com) (averydennison.com)