Procter & Gamble Co’s quarterly sales fell below Wall Street estimates, Reuters reports. The company had a disappointing performance at its grooming unit that makes Gillette razors and shaving products.
Shares of Procter & Gamble fell 2 percent before the bell.
The company cut prices on products in the grooming business by 3 percent to claw back market share lost to upstarts such as Dollar Shave Club. Sales in the unit fell 1 percent to $1.65 billion, while volumes dropped 1 percent.
David Taylor, chairman, president and chief executive officer, comments, “We made important progress in fiscal 2018. We delivered strong volume and consumption growth, market share trends improvement, Core EPS and cash generation results above going-in targets, albeit with organic sales slightly below target."
Taylor continues, "We are operating in a very dynamic environment affecting the cost of operations and consumer demand in our categories and against highly capable competitors. We will accelerate change in the organization and culture to meet these challenges. We will continue to drive cost and cash productivity improvements, and we will invest in the superiority of our products, packages and demand creation programs. All of these efforts are aimed at delivering balanced top-line and bottom-line growth that creates shareholder value over the short, mid and long term.”
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