Procter & Gamble (NYSE: PG) reported quarterly earnings that topped analysts' expectations on Tuesday, though fell short on sales.
The revenue miss is likely to do little to allay concerns of investors regarding continued shrinking market share amid increased competition from private label brands and upstart companies. The maker of everyday household goods like Pantene, Crest toothpaste and Charmin toilet paper reported net sales of $16.5 billion, less than the $16.54 billion anticipated by Wall Street analysts.
It reported organic sales growth, which strips out the impact of currency and other adjustments, of 1%, less than the 2.3% anticipated by analysts.
P&G's Gillette shaving business continues to be a weak spot for the company, with net sales dropping 3% in its grooming business for the quarter. The unit has seen increased competition over the past few years from cheaper rivals like Dollar Shave Club.
Its baby business, which includes brands like Pampers, dropped 2%,which it blamed in part on market pullback in the Middle-East, Africa and Latin America. The business was also hurt by deep discounts by retailers — a constant sore point for the consumer giant over the past few quarters.
The Cincinnati-based company's profit margins were squeezed, hurt by rising commodity costs, shipping expenses and foreign exchange rates.
P&G reported net income of $1.89 billion, or 73 cents a share, down 14.9% from $2.22 billion, or 84% a share, in same quarter last year
The company’s shares were unchanged at $80.20
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