AVY · 10-Q · 2026Q2 · Full report

Operating Expense Trends

Avery Dennison Corp · 2026-08-04 · Importance 54 · Surprise 40 · In source text

Six-month marketing, general and administrative expense increased 10.1% to $769.9 million from $699.4 million. Second-quarter marketing, general and administrative expense rose 12.0% to $394.8 million from $352.4 million. Higher employee-related costs, unfavorable foreign currency translation, and growth investments drove the increase, while productivity initiatives and restructuring savings provided partial offsets. The company also reported higher interest expense of $71.5 million versus $64.9 million for the six-month period, primarily because of €500 million of senior notes issued in September 2025.

Key facts

• Company anticipates an unfavorable impact to operating income in 2026 from normalization of the majority of prior-year temporary cost-saving actions, largely relating to lower incentive compensation. source
• Marketing, general and administrative expense for the three months ended June 30, 2026: $394.8 million. source
• Marketing, general and administrative expense for the six months ended June 30, 2026: $769.9 million. source
• Accrued payroll and employee benefits and other current liabilities reconciling item: $979.8 million at June 30, 2026 and $832.6 million at June 28, 2025. source
• Net (tax withholding) proceeds related to stock-based compensation for the six months ended June 30, 2026: $(9.4) million; for the six months ended June 28, 2025: $(12.6) million. source
• Other expense (income), net for the three months ended June 30, 2026: $21.1 million. source
• Other expense (income), net for the six months ended June 30, 2026: $38.9 million. source

Impact estimates