Procter & Gamble (PG), the maker of Tide laundry detergent, has reported mixed financial results for this year’s second quarter as consumer spending remains weak.
The Cincinnati, Ohio-based company announced earnings per share (EPS) of $1.43 U.S., which topped the $1.41 U.S. expected among analysts.
However, revenue in the spring quarter came in at $21.2 billion U.S., which fell short of the $21.38 billion U.S. forecast on Wall Street. Sales were up 2% from a year earlier.
Management at Procter & Gamble, whose other products include Crest toothpaste and Pampers diapers, blamed the mixed print on tepid consumer spending.
Procter & Gamble has seen demand for its products weaken as shoppers have grown more value conscious and seek out cheaper generic versions.
The company’s beauty division was the top performer during the quarter, posting 3% year-over-year sales growth.
The baby, feminine and family care division, as well as the grooming business, each reported that sales fell 1%.
Health care was the worst performer for Procter & Gamble this quarter. The division, which houses Oral-B and Vicks, saw its sales decline 3%.
Looking ahead, the company is not forecasting a significant return in demand for its products.
Procter & Gamble said that it expects full-year earnings per share of $6.89 U.S. to $7.11 U.S. The company is also projecting sales growth of 1% to 3% compared with a year earlier.
The top end of that outlook is above Wall Street forecasts that call for earnings of $7.04 U.S. a share and revenue growth of 2.7%.
PG stock has declined 5% over the past 12 months to trade at $148.88 U.S. per share.
