AVY · 10-Q · 2026Q2 · Full report

FX / Currency Headwinds

Avery Dennison Corp · 2026-08-04 · Importance 37 · Surprise 32

International operations generated approximately 69% of net sales during the six months ended June 30, 2026, leaving results exposed to foreign-exchange movements across the company’s global markets. Foreign currency translation reduced reported net sales by 3% for the first six months and by 2% in the second quarter, while the outlook assumed a favorable full-year translation impact on net sales and operating income based on recent rates. The favorable year-to-date translation effect primarily reflected euro-denominated sales and sales in China, and Avery Dennison uses foreign-exchange forwards, options, and swaps where appropriate.

Key facts

• During the first six months of 2025, we settled €420 million notional amount of net investment hedges. source
• During the first six months of 2025, we settled €420 million notional amount of fair value hedges. source
• The favorable impact of foreign currency translation on net sales in the first six months of 2026 compared to the same period last year was primarily related to euro-denominated sales and sales in China. source
• The impact on net income from transactions denominated in foreign currencies is largely mitigated because the costs of our products are generally denominated in the same currencies in which they are sold. source