Adds comments from conference call throughout

By Juveria Tabassum

Feb 6 (Reuters) - Newell Brands NWL.O has cut prices at its Rubbermaid brand and on some baby-care items such as car seats, a spokesperson told Reuters on Friday, as the Sharpie maker faces steep tariffs and weak consumer spending.

Consumer packaged-goods companies including Newell, which hiked prices over three rounds in 2025 to counter tariff impact, saw volumes drop as consumers reduced spending on general merchandise items such as storage boxes and kitchen equipment.

Newell's portfolio is heavily exposed to middle- and lower-income consumers who are increasingly wary about spending in the U.S. amid student loan repayments, high food costs and a choppy job market.

Snacks and soda giant PepsiCo PEP.O said on Tuesday it would cut prices on key brands such as Lay's and Cheetos by up to 15%, after a round of feedback from consumers showed that they were feeling the strain on their budgets.

"While pricing on some products remains modestly above late-2023 levels, Newell has lowered MSRP on several core items, including the Pack 'n Play playard and the Turn2Me car seat," a spokesperson for Newell Brands said.

The company had raised prices of Graco products, which are made in China, over the last year.

Multiple price hikes due to tariffs significantly affected consumer behavior and retail dynamics in 2025 as some large retailers shifted from direct import to domestic fulfillment, CEO Chris Peterson said on a post-earnings call.

Prices are being lowered at food storage brand Rubbermaid by up to 15% as Newell invested in domestic manufacturing capability to offset tariff impact, Newell's spokesperson said.

The company also adjusted prices and increased discounts in the kitchen products business, where most pressure was felt during the year as tariffs hit distribution, and rivals ramped up promotions, executives said.

Newell reduced sourcing exposure to China to below 10% in 2025, the spokesperson added.

It expects lower cash tariff payments in 2026 compared with 2025. It had raised its expected tariff costs to $180 million from $155 million for 2025 in October.

GENERAL MERCHANDISE DEMAND REMAINS WEAK

Newell's shares fell nearly 12% premarket on Thursday, after the company forecast annual adjusted profit below estimates.

The company was not assuming an improvement in underlying category demand this year, CEO Chris Peterson said in a statement.

"We think this is reasonable, though further category deterioration is a risk given waning consumer sentiment," said Nik Modi, analyst at RBC Capital Markets.

Newell targets adjusted earnings per share of 54 cents to 60 cents for full-year 2026, compared with estimates of 60 cents, according to data compiled by LSEG.

Fourth-quarter revenue of $1.90 billion edged past estimates of $1.88 billion.