Procter & Gamble (PG) joins other consumer goods giants as buckling a bit under tariff related economic headwinds.
The maker of Tide laundry detergent cut its full year sales and EPS outlooks on Thursday, citing pressured consumers and cost uncertainty. Earlier in the morning, PepsiCo (PEP) slashed its full-year profit outlook owing to the same stresses.
"We expect uncertainty to continue", P&G CEO Jon Moeller told Yahoo Finance. The company also missed expectations on net sales and organic sales growth for its latest quarter.
While consumers aren't trading down to cheaper products, they are shifting behaviors to save money, Moeller said. For example P&G is seeing consumers do fewer laundry loads each week as a means to conserve detergent.
P&G shares fell 2.4% in pre-market trading.
"1Q results are likely to be rough (and tariff issues came after). Subdued demand, retail de-stocking, and higher inflation expectations will lead to 1Q misses and guidance cuts. Tariffs are a new challenge for the year. The bar was low; we're going lower," warned Jefferies analyst Kaumil Gajrawala ahead of results from consumer packaged goods companies such as P&G.
Net sales: $19.8 billion, -2% from the prior year vs. $20.22 billion estimate
Organic sales growth: +1% vs. +2.53% estimate
Beauty segment organic revenue growth: +2% vs. +1.62% estimate
Grooming segment organic revenue growth: +3% vs. +1.59% estimate
Healthcare segment organic revenue growth: +4% vs. +3.99% estimate
Fabric & home care segment organic revenue growth: Flat vs. +2.7% estimate
Baby, feminine, & family care segment organic revenue growth: -1% vs. +2.82% estimate
Gross margin: 51.2% vs. 51.5% estimate
Adjusted EPS: $1.54, +1% from the prior year vs. $1.53 estimate
Full-year organic sales growth: +2% (previous: +3% to +5%; estimate: +2.54%)
Full-year EPS: $6.72 to $6.82 (previous: $6.91 to $7.05; estimate: $6.88)
Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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