Shares of Church & Dwight Co. (CHD) tumbled 5.27% in pre-market trading on Thursday after the consumer goods company reported mixed first-quarter results and significantly lowered its full-year 2025 outlook, citing slowing category growth and tariff pressures.

For the first quarter, Church & Dwight reported adjusted earnings per share of $0.91, narrowly beating the consensus estimate of $0.90. However, revenue fell short of expectations, coming in at $1.47 billion compared to the $1.51 billion analysts had projected. The company experienced a 2.4% year-over-year decline in net sales, with organic sales dropping 1.2%.

In a concerning development for investors, Church & Dwight substantially reduced its full-year 2025 guidance. The company now expects organic sales growth of just 0% to 2%, down from its previous forecast of 3% to 4%. Additionally, adjusted earnings per share growth for the year is now projected at 0% to 2%, a sharp decrease from the earlier outlook of 7% to 8% growth.

Rick Dierker, Chief Executive Officer, explained the challenges facing the company: "Despite these uncertain markets, we remain focused on growing our market shares across our portfolio. The sales outlook now reflects no recovery in retailer destocking from Q1 and slower category growth due to macroeconomic uncertainty. The deceleration of category growth in our largest categories in the US reflects the tentativeness of the US consumer."

Adding to the company's woes are concerns about tariff impacts. Church & Dwight disclosed that it is currently projecting a 12-month run-rate gross tariff exposure of approximately $190 million. To mitigate this, the company announced a series of supply chain actions, including no longer sourcing Waterpik flossers from China for the U.S. market. These efforts, combined with other initiatives, are expected to reduce the company's tariff exposure by approximately 80%.

Looking ahead to the second quarter, Church & Dwight provided a gloomy outlook, forecasting organic sales between -2% to flat and adjusted earnings per share of $0.85, representing a 9% decrease compared to the same period last year. This guidance falls significantly short of analysts' expectations, adding to investor concerns about the company's near-term prospects.

As Church & Dwight navigates these headwinds, investors will be closely watching for signs of improvement in category growth and the effectiveness of the company's tariff mitigation strategies in the coming quarters.