The back-to-school season is off to a good start at Newell Rubbermaid, as students buy up its PaperMate pens, Sharpie markers and other office products in preparation for hitting the books.
 
“We’re doing pretty well,” Newell Rubbermaid CEO Mark Ketchum (pictured) said in an interview. “In office products, during the two quarters that span the back-to-school activity, we’ll do as much as 60 percent of our business.”
 
Newell reported better-than-expected second-quarter earnings on Thursday but its stock tumbled as more troubling news on U.S. housing overshadowed the financial markets. The government reported a sharper-than-expected drop in new home sales for June. Newell’s diverse products also include Irwin tools, Calphalon cookware and Goody hair brushes.
 
Here’s more from the interview with Ketchum:
 
Q: Do you think Newell’s stock (down about 7 percent year to date) is affected by the increased attention on the weakness in housing? 
A: I do. I think our stock is a heck of a value right now. Its current price reflects more of that softness than our stock ought to have. We clearly see some of our competitors that are affected by the housing market seeing a similar downturn in their stock price based.
    
Q: Are you seeing retailers pare back orders? 
A: Because of the impact of remodeling as well as new housing starts, there’s no question that tool retailers have pulled back their inventory or promotion. There has been some slowness reported in other retail sectors we participate in as well. It is a headwind. What I fixate on are things that are within my control. We continue to forecast 3 to 5 percent topline growth this year even in that slower market.