Procter & Gamble (NYSE:PG) on Thursday reported mixed quarterly results as demand for its products fell, gave a dimmer outlook for the current quarter and said price hikes could be coming.
The company, which owns Tide and Charmin, slashed its forecast for core earnings per share and revenue for the full fiscal year, which is in its final quarter. P&G CEO Jon Moeller cited new tariffs, and the company’s plans to invest back into its brands during a period of uncertainty, as the reasons for its slashed outlook.
P&G already makes many of the products sold domestically in the U.S., but President Donald Trump’s tariffs will likely raise some of its costs.
He added that price hikes tied to the tariffs would occur in the next fiscal year, which starts in July.
Shares of the company fell more than 1% in premarket trading. They opened lower by $8.01, or 4.8% to $157.74.
Earnings per share came in at $1.54 vs. $1.53 expected, on revenue of $19.78 billion vs. $20.11 billion expected
Net sales dropped 2% to $19.78 billion. The company’s organic sales, which strip out acquisitions, divestitures and foreign currency, rose 1%.
P&G’s volume fell 1% in the quarter. Volume excludes pricing, which makes it a more accurate reflection of demand than sales.
P&G’s baby, feminine and family care division reported a 2% decline in the volume, the steepest decrease of its segments. All three parts of the business, which include Pampers diapers and Bounty paper towels, saw volume shrink during the quarter.