Company: ACCO
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000950170-25-101292
Chunk: 10

Company: ACCO BRANDS Corp
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 2
Chunk 10
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 softer global demand for consumer and business products, partially offset by growth in sales of gaming accessories. Gross margin decreased 190 basis points reflecting lower sales volume, unfavorable fixed-cost absorption and impacts from tariffs.

We reported operating income of $33.0 million in the second quarter, compared to an operating loss of $111.2 million in the prior year's second quarter. The prior year operating loss was primarily due to non-cash impairment charges totaling $165.2 million related to goodwill and an indefinite-lived trade name within our Americas reporting unit. The current year quarter was impacted by lower sales volume, unfavorable fixed-cost absorption, and higher restructuring expense, partly offset by the benefit of cost reduction actions taken in the prior year, lower incentive compensation expense, and the gain on the sale of two of our facilities.

Our operating cash flow for the first six months was cash used of $33.4 million compared to cash provided of $2.6 million in the prior year primarily reflecting reductions in working capital. Our operating cash flow continues to be seasonal with a historic pattern of strong inflows during the second half of the year.