Avery Dennison (AVY) shares plummeted 5.71% in pre-market trading on Tuesday following the release of its second-quarter earnings report and third-quarter guidance. The packaging products maker's results and outlook fell short of Wall Street expectations, prompting investor concerns about the company's near-term performance.

The company reported second-quarter sales of $2.22 billion, down 0.7% from the previous year and below the analyst consensus estimate of $2.24 billion. While Avery Dennison's adjusted earnings per share of $2.42 slightly beat expectations of $2.39, it remained unchanged from the same period last year, indicating stagnant growth.

Adding to the pessimism, Avery Dennison provided a disappointing outlook for the third quarter. The company forecasts adjusted earnings per share between $2.24 and $2.40, falling below the Wall Street consensus of $2.41. This guidance suggests potential challenges in maintaining profitability in the coming months.

CEO Deon Stander acknowledged the impact of trade policy changes on the company's performance, stating, "Trade policy changes led to lower sourcing demand for apparel and general retail categories in the quarter." However, he noted that growth in high-value categories and productivity improvements in the base business helped offset the impact from tariffs. Despite these efforts, investors seem concerned about the ongoing uncertainty in the macroeconomic environment and its potential to continue affecting Avery Dennison's business.