Jan 22 (Reuters) - Procter & Gamble on Thursday fell just short of Wall Street expectations for its second-quarter revenue, held back by weak consumer spending in core categories such as U.S. laundry detergent and toilet paper, which overshadowed strength in its beauty products.

Shares of Procter & Gamble slipped over 2% after earnings results.

Adjusted earnings topped targets in a mixed performance for the bellwether U.S. consumer goods maker, whose results are seen as an indicator of the industry's health as many customers struggle to make ends meet.

For the three months ended December 31, P&G reported net sales of $22.21 billion, compared with estimates of $22.28 billion, according to data compiled by LSEG.

The results meant the company was on track to deliver within its annual targets in a challenging consumer and geopolitical environment, said Shailesh Jejurikar, who became CEO January 1, in a statement.

The company's core gross margin fell for the fifth quarter in a row, partly due to tariffs and investments in different pack sizes to appeal to consumers looking to save money.

Lower-income households have cut back on spending even on essentials, as they deal with high prices, a tepid labor market and broader geopolitical uncertainty.

This was exacerbated by a government shutdown that delayed payments for food assistance in October and November, with P&G finance chief Andre Schulten noting in early December that sales were down across categories in the U.S. due to the shutdown.

Overall sales volumes were down 1% in the second quarter, including drops in three of the company's five reported categories, and a rise only for the beauty business, which has been an outlier over the past year as consumers continue to buy self-care products. Prices were up 1%.

P&G has also raised prices for some of its products to offset the impact from U.S. President Donald Trump's import tariffs. Higher prices and some product innovation in its hair and personal care products, which include the Pantene and Olay brands, helped volume increase 3% in the beauty category, which accounts for about 18% of the company's total sales.

Excluding one-off items, P&G reported earnings per share of $1.88, compared with estimates of $1.86, and maintained its annual core earnings and sales targets.

However, P&G cut its annual net earnings-per-share growth target to 1% to 6%, from 3% to 9% expected earlier, due to higher restructuring charges.

P&G has been exiting underperforming businesses over the past few years, the latest being laundry bars in India and the Philippines, as it adjusts its portfolio to shifting consumer spending trends in overseas markets. The company plans to cut about 7,000 non-manufacturing roles over the course of two years.