Procter & Gamble Co.

Mixed Earnings Results: Procter & Gamble (P&G) reported a 1% organic sales growth in Q3, contrasting with a historical growth of around 3-4%. While seven out of ten product categories held or grew organic sales, family care, baby care, and home care categories saw declines, with notable challenges in France where sales declined high teens.

Revised Fiscal Guidance: For fiscal 2025, P&G expects organic sales growth of approximately 2%, with a core EPS forecast of $6.72 to $6.82 (2-4% growth YOY). This suggests a conservative outlook, indicating that the company may not return to historical growth rates soon due to ongoing consumer volatility and economic pressures.

Consumer Behavior Trends: Consumer confidence metrics remain low, affecting spending patterns, with notable shifts toward big box and online retailers as consumers look for better value. This signals a potential trade-down behavior that could further pressure sales, highlighting a need for P&G to respond with its diverse portfolio.