Procter & Gamble posted a decline in sales of beauty products and diapers, and shares tumbled Tuesday.
The consumer products giant missed revenue estimates, although adjusted profit was better than expected.
P&G also faced what it called "unfavorable foreign exchange impacts."
Shares of Procter & Gamble (PG) tumbled Tuesday when the consumer products giant missed revenue estimates as sales of its beauty products and diapers declined.
P&G reported fiscal 2024 fourth-quarter revenue was basically unchanged from last year at $20.53 billion, affected by “unfavorable foreign exchange impacts,” while the average of analysts surveyed by Visible Alpha came in at $20.75 billion. Adjusted earnings per share (EPS) of $1.40 was above forecasts.
CFO Says Supply-Chain Constraints Hit Luvs
Beauty division sales fell 1% year-over-year to $3.72 billion, hurt by lower demand for the super-premium SK-II brand and in Greater China. Sales at its Baby, Feminine & Family Care unit dropped 3% to $5.01 billion, and Chief Financial Officer (CFO) Andre Schulten explained in an interview that the company wasn't able to innovate its Luvs diaper brand because of supply-chain constraints.
Chief Executive Officer (CEO) Jon Moeller said the company faced "a challenging economic and geopolitical environment" during the year.
Even with today's 6% declines to $159.69 as of 11 a.m. ET, shares of Procter & Gamble are about 9% higher year-to-date.
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