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2025-07-29 19:02:29
[P&G Faces Dual Challenges: Heavy Tariff Pressure and Cautious Consumption, Clouding Growth Outlook!] ⑴ On July 29th, Procter & Gamble forecast full-year results significantly below Wall Street expectations, primarily due to consumer caution and uncertainty stemming from Trump's tariff rhetoric. ⑵ Although P&G's fourth-quarter revenue grew 1.7% to $20.89 billion, exceeding analysts' expectations of $20.82 billion, and earnings per share reached $1.48, beating the expected $1.42, ⑶ this was driven by a 1% price increase and flat year-over-year sales, compared to a roughly 1% decline in the previous quarter. ⑷ P&G expects Trump's tariff rhetoric to increase its pre-tax costs by approximately $1 billion in fiscal 2026. ⑸ The company forecasts a 4% increase in core net income for fiscal 2026 to a range of $6.83 to $7.09, below the expected 3.49% increase to $6.99. ⑹ In addition, P&G expects total net sales to grow by 1% to 5% in fiscal 2026, with a median of $86.8 billion, slightly lower than the average analyst expectation of 3.09% growth. ⑺ To address the challenges, P&G began restructuring in June, planning to exit some brands and lay off approximately 7,000 employees over the next two years to improve productivity. ⑻ Despite internal management changes (Shailesh Jejurikar was appointed CEO), P&G's growth prospects remain severely tested by the macroeconomic environment of high inflation and weak consumer purchasing power.
