Procter & Gamble Co. shares tumbled Thursday after the consumer-products giant posted revenue that missed Wall Street expectations, underscoring mounting concerns about weakening demand as cautious shoppers pull back on spending.
The stock fell 1.3% to $144.17 in premarket trading, even as broader equity markets advanced with S&P 500 futures climbing 0.5% amid continuing relief over Greenland tariff developments.
The Cincinnati-based company reported adjusted earnings of $1.88 per share for its fiscal second quarter, narrowly beating the $1.86 consensus estimate compiled by FactSet. But net sales rose just 1% year over year to $22.2 billion, falling short of the $22.3 billion analysts had forecast.
Management maintained its full-year profits forecast of $6.83 to $7.09 per share, even as the results highlighted uneven performance throughout its business segments. Beauty and health care maintained resilience, each posting 5% sales growth, but the Baby, Feminine, and Family Care division saw sales drop 3%, which the company ascribed partly to lower volumes.
The tepid results come as investors grow increasingly concerned that continuing inflation and labor market uncertainty are pressuring American consumers, curbing their willingness to spend on everyday household goods.
Chief Financial Officer Andre Schulten had previously flagged challenges ahead during a Morgan Stanley investor conference last month. He noted that packaged-goods sales fell sharply in October and remained weak through November, citing a nervous consumer base, the federal government shutdown, and the temporary suspension of food assistance programs.
The wider consumer-goods sector has struggled this earnings season. WD-40 Company showed a 7% decline in operating income for its fiscal first quarter, while brewer Constellation Brands saw Q3 sales plunge 10%.
Procter & Gamble shares have declined 12% over the past year as investors grapple with a deteriorating economic backdrop for consumer staples.
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