ACCO - Earnings call transcript Q4 2021

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Christine Hanneman

00:06 Good morning. This is Christine Hanneman, Senior Director of Investor Relations. Welcome to ACCO Brands Fourth Quarter and Full Year 2021 Conference Call.

Speaking on the call today are Boris Elisman, Chairman and Chief Executive Officer of ACCO Brands Corporation; and Neal Fenwick, Executive Vice President and Chief Financial Officer. 00:27 Slides that accompany this call have been posted to the Investor Relations section of accobrands.com. results, refer our adjusted about speaking we to may results. When the and exclude change and of adjusted to tax transaction, reflect results out restructuring PowerA in consideration earn the integration, value rate. the Adjusted an including amortization costs and related items, other fair contingent nonrecurring and accompany earnings most Schedules GAAP directly of measures measures adjusted this release these of are other and reconciliation results the and comparable that slides measures call. financial in non-GAAP a to the quantifying and forecasting amounts in difficulty inherent the forward-looking to not do measures. our certain reconcile Due we non-GAAP time concerning Forward-looking impacts the during XX:XX the management us made the the statements based the information are the call, beliefs on statements including pandemic are on statements assumptions of to based the made. COVID-XX and on of available company at are certain to actual assumptions. risk our earnings uncertainties and statements differ please for forward-looking filings of of SEC and subject an refer our materially, risks explanation these release to could results and All factors and

made and statements forward. forward-looking update we of going to obligation are them Our no assume as today

our a XX:XX turn hold will I to Q&A call remarks, prepared over Now, Elisman. the we Boris session. Following will

Boris Elisman

X% shares, highlighted its for results. record XX:XX delivered very and XX:XX year strong work to year's inflation, of end Good I'm PowerA those very and added deserves We proud sales, The sales. Despite free acquisition an growth XXXX XXXX, an of COVID year flow high shortages has credit resilience. of lot margins, operating supply sales our of and you XX% comparable in had semiconductor last with leverage morning, not growing excellent team a us. our for joining at a the challenges, improved product issues, everyone. Thank on hard easy for market cash was expanded chain companies, complications. lower by and the top year.

these faster-growing to XX% has our categories. from from having consumer almost now, more of technology sales products business and come sales pivoted Our and

have profit Let XXXX flow and we you Neil from We sales, your continue. afterwards into XX:XX review take good join me few then expect the will cash highlights free will take to questions. to all year, through and a going numbers. I momentum him growth last

stapling fourth note with online they Not a X%, on in XX% a they year's begin share in with market approximately had continue. great quarter Five the America products growth. with take with expect comparable growth XXXX. XXXX in with XX:XX pre-COVID America when pro growth North growth to in sales, back-to-school sales large shortages you the XX:XX our cost and growth than including economic that the also terrific higher exceeded grew and console especially impressive last and growth Without Furthermore, It industry sales long-term our was this fourth for growth expanded were brands substantially products, XX% sales growth our Our XXXX side, a finished in accessories higher and we higher in of total sales the The expanded year, art in benefited during channels. XX% share had in note and gaming and its even On North to expectations. overall deal XXXX. including sales purifiers, business XXXX PowerA initiatives, growing comparable They channel reduction that sales only the were forma sales PowerA. in and strong the comparable had XX%, XXXX, high in half. year. has XX:XX US not highlights products to quarter America grow XXXX. year Equally sales products in comparable due and business more the portfolios it, comparable X%. is to to recovery. initial increasing increases market did grew expected underlying and America EMEA sales X% We adjusted EMEA our sales console basis North The number XXX at-home leveraged the the profitable X% higher consider a US. growth in taking. headline points get of its double-digit PowerA but sales especially and impressive and was Star with with air product share, PowerA’s than price shredding, product North strong year to hurt results than very pleased X% margin in operating Kensington second a I'm repeat addition in performance, gaming

On we investments side, channels. in our the initiatives and growing continued channel diversification

was by growth by and Our led e-tail, PowerA. helped retail XXXX

good faster dealers to done Walmart in channel in saw Amazon our healthy XX:XX margins. pleased X%. our have transforming customer the marketing was global with independent I'm largest landscape XX% also and growth We almost was with and very work our growth wholesalers. sales teams sales. and second, of with

company Our XXXX shape and in with enters momentum. strong excellent

and me. most will wise the I'll is now and miss him. his historic afterwards. X will to will questions. friend company smooth to successor transition flow Neal and recent it free including through your have I that, marketplace to for to With expect named Neal publicly a transformation Brands, for I growth profit in with current has over He going sales, record of role help Neal of the We years performance. Neal, another thank want He's XX:XX navigating as make announcement to until continue recession, growing to both proportions. been the over his retire XX:XX this ACCO technology-oriented successfully come our consumer We're us about answer and winning CFO. I a CFO great plans to cash few faster company and call his later Before Neal strong a year. comments that a us XX our and instrumental to counsel year to and been want Neal? to in hand back our with I hand and XX our

Neal Fenwick

full XX:XX words. Thank good your year results. everyone. Boris you, our morning, refer my for And comments of Most to kind will

XX% to reported net the $X.XX PowerA, of which XXXX from sales had Our due sales largely contribution to $XXX billion, million. increased

rose had we comparable improved as in higher X% markets. and pricing Our volume most sales

a added net versus This year of was and X%. exchange or per higher income was $XXX Full share was business a impact count million XX:XX $X.XX, million comparable the year. negative $X.XX. rate quarterly in Foreign the from tax share. $X.XX EPS our cadence while income impact The year $XXX uneven. adverse $X.XX and improvement XXXX. from included adjusted higher $X.XX added contributed Adjusted PowerA a net $X.XX was $X.XX, prior

reflected quarter first with not. first still declined compared COVID-XX did XXXX, XXXX Our which as the of quarter of

X% inventory because expense steadily to X pandemic million benefit Results not turned improved XX:XX sales was from related normal last to in SG&A for expense million costs. at our and rising and with XX gross full the the year also the PowerA. XX% for Each of fully X%, to the business X and sold. quarters, last comparison change with were operating cost was in increase an SG&A a XXXX for lower the than million X SG&A chain as many adverse are $XXX $XXX on $XXX successfully of is due margin. profit reduction our in below XXXX increases XX.X% fourth by growth temporary to we pressures, points XXXX we compared the was reflect expenses was also The margin our income margin due percentage of and the sales gross met. cost expenses certain increase XX:XX goods SG&A income instalments PowerA the to quarters fair on earn-out quarter payable higher offset efforts margin subsequent of of quarters. reported Our in our sales. cost of focus to if XXXX. did year, adjusted better but recognize quarter. operating supply X the equal XX.X%. March the percentage basis that level of improved the a earn-out as value cost impacted targets for in statement. our XXXX XX:XX sales The Even and increases, in first sales Foreign but and company result our in was reduced the The benefited Reported point able XX.X%, favorable XXXX exchange in almost of chasing any compared reductions and charges. are both $XXX price for continually largely million was XXXXs we addition year

it with those based exceeded PowerA the to associated earn-out and XXXX target higher profit products for XXX% with of criteria. achieved But XXX% the of its criteria. less than the For associated achieved costs and due freight earn-out sales

income million million amortization out earn based related PowerA Our true-up performance. $XX after transaction reflects fourth In $XX $X PowerA’s and the inventory of to operating XX:XX contributed and XXXX the the to of costs. quarter earn-out, acquisition million $XX of on the actual million related to

expect we quarterly out the sales to of the remainder now for earn profit charges XX:XX out metrics. throughout and period XXXX earn both taxes. For Turning

full $XXX both reflected benefit tax rate America primarily PowerA. due year. applied altered The This year. million adjusted and from foreign of change significantly of for Net year Now led segment recovery approximately higher sales tax the our versus We our rate change sourced to larger some X% ability and North accounted XXXX the for prices utilize reversal million $X.XX from full offices quarter year. $XX items, valuation to turn income. for and to previous taxes also rates adjusted reduced the for a XX%. the the adjusted adjusting tax GAAP a for $X.XX and Our reopening. in specific EPS rose billion, our similar a our rate mix XX% volume to earnings to XX% largely of contribution of have details beneficial anticipate increased which tax guidance from earnings allowance XX:XX sales the in rates. to from geographic Comparable related we This schools results GAAP will improvement let's fourth to a being the adjusted of that

back-to-school had solid some the commercial a and season in in we saw quarter. year, sales the starting second recovery During

inventory $XXX sales repeat result from to sales charges, North comparable large to and expenses sales and long-term by the above PowerA. adjusted SG&A that did as EMEA. operating million The level. addition benefit to the strong million market as both and and rose XX% a recovery, were of of rose Net of general economic XX% product line. gains and the a lower Now million, technology declined increased we which well PowerA, increases are share channel because turn very as $XX to higher America $XXX reductions pre-COVID the approximately Our XXXX XX:XX in Franklin normalized cost costs, shipped reflected offset in particularly order not XXXX. let's to margin of income XXXX

offset Moving have volume price consecutive operating quarters International increased X% XX:XX seen to continued first to We improvement in operating EMEA. due of the X realizing margins price strong the lower to sales a additional lower profit decreased increases, inflation. especially for quarter, year, benefit but in higher price gross October primarily business net increases. PowerA exchange. of announced the increased COVID-XX, favorable sales lag now in has due which posted the Mexico Comparable Mexico to of be and increases education related last throughout closed of we fourth and and foreign as and in the EMEA a EMEA prices vaccination have but to seeing the to and in quarter now or instead XX:XX for XXXX America have segment, X% because XXXX the in remained not in improvement did largely Schools have in-person season first in Brazil. season quarter of Brazil the Brazil. Latin will in COVID-XX, XXXX year in began in as season. February both January continue into Brazil for reopening Mexico back-to-school most reopen schools shifted rates of essentially by normal Mexico particularly XXXX. increased, most although the are and impacted most of the and

higher Our demand business in we result, XX:XX volume. Australia a first posted America are price sales seeing both in and from Latin the increases in improved As in quarter.

included posted were However, higher $X as and lower sales segment benefited a comparison prices, international many short-term reduction higher quarter cost higher our due debts difficult expenses higher from let's supply government move profit pandemic PowerA. the offset flow. partially cost prior reductions out balance on a disruptions. and This which of operating in for to by sheet stocks Now XX:XX due impacted bad related and year measures, cash was million assistance. to and sales reserves by inventory, first to certain chain The

$XX our XX:XX adjusted of to by in full in cash which We times credit the We basis of XX% debt were leverage inventory to cash EBITDA the was increase driven flow facility $XX increase demonstrates maintain ability was ratio levels points inflation. our We high At reduced to than which of inventory extended generated paid we ended inventory and transit from after to $XXX and due $XXX XXXX payables, the we supply CapEx million had million acquisition. resulted accounted revolving We EBITDA million with cost and to time X.X $XXX had $XX we remaining disruptions acquired chain approximately net million This customer million. A we levels it The achieved year-end year, sales million is flow. PowerA in a XX:XX of our turn For free ratio. increase. for operating end, $XXX at and improvement goods year inflation. dividends activities and delever $XXX available, times, million cash Now of almost XXXX. in adding was of to target. to pleased let's free XXX our larger and in lower amount represented with to the in service outlook. inventory rapidly our million, net shipping payables and due both

We demand least in as to XXXX offices expect in physical use, continue to from improve recover world hybrid and COVID-XX. continue in and mode more are economies schools to at

and increases drive points margin points will basis in productivity an additional offset to XXXX. gross increase to continuing Therefore XX to basis gains. cumulative cost we are to returning anticipate up inflationary we remain catch and We level, $X.XX environment XX:XX achieve We due the to additional to goal. XXX margin it pricing be improvement to us year in than exchange XXXX. the more headwind take magnitude foreign of increasing but cost both annual gross We longer-term will to that our a expect X inflation committed and

our in Full impact outlook year tax exchange. adverse a For be negative X%, the EPS of year is expected $X.XX be range sales to X% full approximately foreign $X.XX of to $X.XX, in exchange. impact range effective a foreign to X% rate including the growth a expected is The including to a from adjusted XX%. for from is adjusted

$XX our $XX expect A large of executed during continue We will the help deliver the full again margins year. approximately for million expense productivity in and to to preceding which by from comes year year of continuous our EPS. equates savings savings. Intangibles approximately is full-year of $X.XX annual amortization projects programs full XX:XX benefit the million, estimated adjusted to to be part

free of million, at flow $XX $XXX our of from to least million. $XXX expect CapEx at least We operations be cash million and cash

of will XXXX, balanced we reduction For return to more a expect that debt historically allocation opportunistic capital include and repurchases to shares. dividends, our

repurchase authorization. our We have $XXX remaining stock on million

revolver We in than We and banks rise finish expect with XXXX. to significant maintain any support ratio availability times. to net with year less of relations leverage should our acquisitions the a X good

to quarterly and not returning are with guidance. will annual guidance continuing We be an

questions. from of be quarter However, negligible volume is which foreign don't we to Operator? exchange to posted expect the quarter, Boris quarter, EPS of a the XX:XX on expect and an I Q&A let's sales $X.XX outlook and we between $X.XX In for first from to expect first foreign exchange. and and prior-year as growth, increase impact level our impact take small inflation, will comparisons. quarter XX:XX may expected of first X.X%, are that foreign we PowerA repeat. Now a quarter providing and XXXX You significant XXX% your we recall impact Adjusted sales with to where that first is in happy exchange. the adverse be X.X% move includes first

Operator

question Thank Sidoti. from you. Instructions] ahead. Please McGinnis [Operator XX:XX We first our take from Chris go

Chris McGinnis

again retirement for Boris, best Thanks and strong you XX:XX the congratulations your on Wish quarter. the the thanks retirement. also help Christine. years. on and in Good morning, and Neal support and the congrats the all over Neal,

Neal Fenwick

you, Thank XX:XX Chris.

Chris McGinnis

And the around chip impacted growth your has just Thanks. PowerA how in XXXX? been expectation PowerA shortage? much question First by what's XX:XX and results for

Boris Elisman

others XX:XX of lack been PowerA Thanks, Chris. has impacted availability. the certainly industry, Like in product by console

job Our was is Nintendo by season. much XX% XX% the the than strongest Despite that out which fact inventory in hurt time done of half holiday the the year, of grew and during the securing the overall our PlayStations in especially growth, and is that weren't which holiday included is there great products, demand fourth have a -- initial for higher and teams our anticipated enough growth quarter. especially rate which but PowerA there selling, that second the Xboxes is

executed we return historical been growth, expecting there. its really historical If been historical we even would to next better, at trend growth. out to certainly, well, more are PowerA but So trend sales have – look industry really year, consoles the there but trend we had XX:XX it's growth, not

do we to So for in XX% XXXX. range be Hopefully there, sales better, expectation. we'll there'll out initial the our XX% that's consoles more but hopefully expecting are

Chris McGinnis

for is and doing nice about mandates, that region? And QX. are Great. in to see North And talk America driving then, rebound in growth the between Boris. Thanks EMEA? Can restrictions maybe anything the performance it's that you you Thanks. just of different and the outside from just continued XX:XX difference America North that that EMEA in

Boris Elisman

is are go in is which years. almost customers. last EMEA such vectors has over the a grown DIY EMEA of of additional significantly $XX outside to America Thanks, different driven consumer A in XX:XX and and a little percentage that more more North types America and growth between has driven. those few The North school much tools, America business businesses million commercially bit Chris. larger North and of EMEA. EMEA, nicely sales our as America, is North

the are takes EMEA is large So channels. Outside puts of different a different. homogeneous obviously has most countries North in countries. XX what fairly businesses drives slightly different America that, business concentrated with and the with market

the and with team we that actually terrific of in and different. taking have on So, EMEA of dynamics EMEA a the growth addressing the really before are has markets market in XX% significant done of we share took sales feet as XX:XX Our year, the the customer advantage a comparable fact needs. job ground lot last Certainly a year -- the well.

assortment. product broad a have We

quick and sales have We very drove that work-from-home very and office growth really environment to into particular well. environment were many and vectors home pivot EMEA in to

So job in for itself. think growth, by we the did much I dynamics. as mentioned, more In a tremendous sales and speaks sales is ‘XX affected were America, to XX% as its such, of back North I back-to-school consumer driven and XX:XX school

sales and working schools more mode, in fully the they different, of to remember, session ability with If took inventory but to job you happy And were affected. the are people regions and that the office were a in The certainly saw done were from America a the sales affected were the sell to that inventory in channel we're in. XXXX North more ‘XX. in XX% was really a both hybrid you tremendous with environments there the in rebound QX didn’t as due good. So returning North channel, in but and our growth comparable nicely performance. have sell-out in people lot We was share, XX:XX in America ’XX,

Chris McGinnis

in in but questions to queue, going taking I'm XX:XX QX. luck for and good thanks back jump my

Boris Elisman

XX:XX Thanks, Chris.

Operator

Brad from KeyBanc. comes Please go ahead. question from next Thomas The XX:XX

Q –Unidentified Participant

Good is for Brad. This Jim XX:XX morning, on everyone.

wanted to Neal his all First and the in upcoming retirement. best I him wish congratulate

could sales by get we I start, just to more the on was a color bit little outlook So segment. hoping

hoping international, X% color sales more But in about as You a was could little to increase you're noted for XXXX. you give America EMEA? X% targeted North bit what to and thinking a I sales

Boris Elisman

Jim. Sure, XX:XX

for America, to guiding sales So and X% North we're roughly X% growth.

you it'd growth sales I'm FX that's be to it's X% and year. segment sales all and EMEA, effects to when all that And XX% X% next for international everything. For -- products for in including giving for X% growth

Unidentified Participant

kind in you XX:XX then to you're was next so any have in expecting you year. similar from America wondering color a and you. And a then as those provide plans EMEA you note, And was And do international? -- I that some elasticity so I seeing wondering price on increases? to take to to of similar North if demand could Great. price Thank mentioned you're perspective if

Boris Elisman

Yeah. XX:XX

in mentioned in different I for environments previous the in North countries. we my different the America, took price XXXX. As are In answer, increases all

up year the by end there. of whole we're end pretty though So even much North the the America, year caught the for of with year didn't much we're pretty in we the by inflation,

selling are a we So do shape minor decent to tweaks catalog more still EMEA, are there there. customers in increase. are to who In North but have in in we mostly can because need ’XX, cycles, we America XX:XX take price commercial limited we're we to when

offset in we are EMEA, a QX of that wasn't and did we in the to So the impact increase continuing price see. to enough inflation that

in us another increase almost significant very get international price is international April catch XXXX. will year So we like of to multiple in do that And us in hopefully we're We North then increases position also offset -- America. inflation. year, of to XX:XXAnd price last doing up. EMEA, April this

necessary ahead there. got to So make we though stay pretty shape sure is good regions to do the of whatever all we're inflation. we that in In the

more So we're do of to the to prepared if all remainder in in need XXXX, do that. we X

Unidentified Participant

Got got in could XX:XX I squeeze And if it. quick just it, then one question. more

management's to debt imagine despite the leverage acquisition bandwidth down pay you're But than a your it. complete integrate lower wondering more an color you targeting capacity a complete financially acquisition. provide So as some was to still could being I to potential bit and another and before terms in of if both acquisition, -- of I PowerA

Neal Fenwick

I'll XX:XX take one. that Sure.

all good of significant we very capacity and We our relationships have a banks. revolver very, have with

to our event And we revolver simple task that the exceeded barrow relatively either to money that so, get. more capacity, that needed be in will

I And behind make really pretty there our management as acquisition bandwidth it continues, is is to is acquisitions from So to barrier at a all. PowerA additional mean far perspective, work that should us. focus that make on acquisitions issue. an being But that much us ability not be team. not more able some PowerA as to a overall

Unidentified Participant

XX:XX year. the of throughout luck Great. Thanks and of the best rest

Boris Elisman

you, XX:XX Thank Jim.

Operator

Gomes next The from NOBLE Capital. ahead. comes Please question XX:XX from go Joe

Joe Gomes

XX:XX Good morning.

congratulations strong Let Neal and quarter. to the for my me also add

Neal Fenwick

Joe. morning, you. Thank Good XX:XX

Joe Gomes

the ball did XX:XX guys any of of commercial give I color really into have -- the knocked was the the the like maybe here. school, had Omicron So if would variant better actually some the quick question quarter the didn't we to kind for you seems a or in wondering, detail quarter then even the be where In third that park. you about the just unless out it got kind really fourth should it muted little products back and demand Delta talked of Omicron here things appreciated. in can impact of you

Boris Elisman

to was weeks XX:XX December, too sales. but We it the kind in an X late saw impact of bit last a little of affect of

delaying at didn't bit on our from little our not sell have and it January sales on a really ability of And this of our we if an have effect in an the had and to year looked So I start ability at good ago. a But year, ship, January, to QX. ship, also were office an up versus reopening’s. impact really did effect just

certainly because of managed spread business. our but we've it affect more really give it the didn’t there credits to it I a and community our manage lot to people, So our affected well, team ability

Joe Gomes

to Boris, And was us give that. for in geographies? introduce if you And XXXX? talked where products new kind also you're as and wondering Thanks I you Okay. to product what looking what details about XX:XX maybe more some might pipeline. of

Boris Elisman

Sure, Joe. XX:XX

purifier as America new our buy of a and So fortifying new international businesses. TruSens to our purifier, be and our products line, reasons air no of for each and introducing new customers of introduced is collection We're both year our sales back-to-school well air to to thousands our We're whole of wellness as in going consumers air have new give expanding wellness. XXXX exception. products, in purifiers line a to reason going support products. to be going to we SKUs to North products outside our

and introducing of our new PowerA Apple then and constantly products Kensington. And Kensington -- and in are introducing -- accessories constantly docking charging evolving stations. We collection has refreshing new controllers stations

excited growth going excited So it's will introducing have that our XX:XX drive the we forecasted that enough to and as growth we fuel than that and I'm that the have be more the I’m drives certainly the that portfolio sales by year. well. we're So, we to for

Joe Gomes

for that. I'll queue. Thank you. XX:XX Thanks back get in Boris.

Boris Elisman

XX:XX Thanks, Joe.

Operator

next Please Research. Our from Barrington go from Steinke comes question Kevin XX:XX ahead.

Kevin Steinke

that ask the that I growth touch XXXX morning. get would maybe about XX:XX you range of range? you Good wanted the revenue to that end you've about the you're on guidance of end for Can given. the and towards some thinking factors higher versus lower

Boris Elisman

gave that going pretty growth demand, the Anything there rates is is in in effects increase in the to other X% kind to is interest our of there broad to Obviously, roof of reopen if sales very demand, a event new XX:XX impacts broad the the early interest on year. obviously And from if there businesses the have smooth go demand a variance detriment. that COVID able variants will to affect. major have we we impacts continue manage and don't will geopolitical guidance additional if affect guidance will offices, a that to more hand, we people manner. rates The It's X%. through if is some obviously impact that

Kevin Steinke

consoles? XX:XX For the

Boris Elisman

we'll push availability, what's see better to higher goes end of all happening. availability, towards should year semiconductor the we able tune the be that of our range. the Better XX:XX guidance console us as along, And as clearly

Kevin Steinke

great. Okay, XX:XX

sales, just general? up Amazon mentioned in you for channel follow-up, is a As there and X% you terms e-commerce the to of Amazon of what penetration your additional of room in

Boris Elisman

and XX:XX global of very and fast, growing are where sales, terrific especially the we opportunity our besides Amazon, more are grow. customers It's all US, they whether channel doing the we growing tremendous other to Amazon opportunity there US, smaller see still just wide but growing especially share. in of X% only taking and big outside in partners, with other open, But is but is and Kevin. still fast sales grow EMEA world Amazon, and and they there's to international e-commerce over have the the both job,

a going opportunity think wave. consumer we and us. overall where for So the grow that huge is e-commerce we certainly to riding represents That's

Kevin Steinke

my Thank for throughout XX:XX I working retirement. Okay, let years. best you. And enjoyed with Neal, me certainly the upcoming add great. your you wishes

Neal Fenwick

Thank XX:XX you.

Operator

ahead. Grossmann XX:XX Oliver from The comes from next Jefferies. Please go question

Oliver Grossmann

I and on to you chain see morning, and you thanks with just down the seeing that? you they should the times come in still or elevated? comfortable XXXX said improvements. start And the ask, Good lead are wanted you to XX:XX to half commodity are cost for last supply taking Neal. And starting questions. quarter Are still back congratulations of

Boris Elisman

not deteriorating, don't certainly supply there'll perfect, from but Yes. worse, It's first are the seeing be to yet better to XX:XX they to your of chip half, we're at second are QX. and part We Oliver. stable, our should not expectation we saw than this yet, not in things half. quarter. going saw in not but not That's this getting chain XX:XX as but improvements in we improving what be they're they or we expecting see in are see are expecting the much certainly XXXX question, in improvement, As semiconductor second what far time. the think be both improvement availability in

Oliver Grossmann

think have I Should little then tech mentioned markets. range to and And more as helpful. of the to from expect would now higher, Thanks. we you XX% a school the portfolio it. it normalized? are it end elevated be consumer come there you that at office more any Got of or you down keep XX% making comes color just XX:XX Do want goals do that

Boris Elisman

over we No, people those We back categories grow, that think Sure. to differentiate, faster-growing because offices to we're going categories those value that areas the will is XX% more also going over time focused and time grow of think in not. number XX:XX add or are demand number to are invest. to consumer with regardless

Oliver Grossmann

is turns X you if leverage to could squeeze year-end, one by then for? X.X appreciate Got it. that range more. the are think still looking And just long-term the Thanks. XX:XX target I I guys in I X

Neal Fenwick

XX:XX correct. Yes that's

Oliver Grossmann

much and Neal. XX:XX Okay. you congratulations again, very Thank

Neal Fenwick

XX:XX Thank you.

Operator

question next XX:XX Financial. Our Khorsand Please from Hamed BWS from ahead. comes go

Hamed Khorsand

morning. XX:XX good Hey,

include I to growth expanding XX% commentary to on provided expecting Europe does PowerA that trend off, on ask the XX%, expectation wanted your into you First of sales in you ’XX. of the just about

Boris Elisman

include not broadening happen things does It force, XX:XX to our going legacy expectations to probably that's until of not XXXX. ACCO the sales

in incrementally. the So charging for of sales Europe controls but have growth and which that and an natural footprint will in But allow PowerA will XXXX, in XXXX seeing to without effort Europe we're launch and gross impact until overall broad incremental middle it's to that going leverage we're that probably stations. for sales our us

Hamed Khorsand

you was, actually my channel Okay. much as XX:XX how other your want are back look sell how inventory, to really And XXXX with more comfortable into carry? they that question you you or push have could into in customers

Boris Elisman

more to have product our to seasons right issues, XX:XX they like customers products want chain [indiscernible] Our product and year. now they and good of buffer do channel more for the If typically want core the a stock supply some very due selling the to inventory level. have they would of anything, at is

they're them more not way are probably other that pushing inventory it's for back So to inventory, around, be it's shipped asking actually sooner. they're on the to

Hamed Khorsand

Okay. Neal. luck, Thank XX:XX good you and

Neal Fenwick

very you Hamed. much Thank XX:XX

Operator

We from [Operator McGinnis question ahead. Chris Please go have from another Sidoti. XX:XX Instructions]

Chris McGinnis

XX:XX Thanks market just to wanted gains competitive seeing about ask the EMEA. in again. landscape I quickly you're the share given

pretty environment the kind external operate Just of in? how to are they competing difficult Thanks. given being

Boris Elisman

of say our would they're be to but job the all I XX:XX terrific did and world position rather I business. taking normal. want credit to teams they I lot as share. anybody Certainly doing still we out competition a and growing would over for than much still else, for trying win in as a share, fighting our It's are give there, is

every So in business day. to we great, our beat happy our have with we have in I'm still It's but XXXX, our XXXX. to best fight

Chris McGinnis

next my taking Thanks Great. question. again for XX:XX

Boris Elisman

XX:XX Thanks, Chris.

Operator

closing can hand we have to I for remarks. confirm questions, our no Instructions] [Operator speaker further back so team it I'll any XX:XX

Boris Elisman

in for Brands. thank We free and strong in cash Thanks improvement interest XX:XX with you excellent Katie. record And your XXXX had flow. earnings everyone sales and ACCO an

about the growing confident categories financial product to to pivoted business we our XXXX. performance company expect and Our faster We future channels continue and as position remain to in improvements has long-term we continue and product-oriented to higher with growth forward on you of for Thank more talking months in our look be We report consumer strong you. for returns couple shareholders. to quarter. a to first our

Operator

XX:XX for Thank all you This now concludes call. today's joining.

now lines. disconnect may your You

ACCO Brands (ACCO) 16 Feb 222021 Q4 Earnings call transcript