Key facts
- Colgate-Palmolive reaffirmed its annual sales forecast for 2% to 6% growth.
- North America organic sales declined 3% in the latest quarter.
- The company raised its 2026 adjusted earnings forecast to mid-single-digit growth.
- New tariffs are expected to offset tariff refunds received in the second quarter.
Colgate-Palmolive reaffirmed its annual sales forecast on Friday, even as it reported a quarterly rise in net sales, due to continued muted demand in North America. Higher food and fuel prices, linked to the Middle East conflict, are impacting lower-income shoppers, making it challenging for U.S. consumer goods companies.
The company's North America organic sales decreased by 3% in the quarter, with volumes falling 3.9%. This decline was attributed to slower category growth, market share losses, increased competition, and inventory reductions by key retailers.
Despite these challenges, Colgate continues to expect annual net sales to grow between 2% and 6%. The company also raised the base for its 2026 adjusted earnings forecast to mid-single-digit growth, up from a previous low- to mid-single-digit projection.
Colgate warned of additional headwinds, noting that new 10% and 12.5% tariffs imposed by the Trump administration are expected to more than offset the benefit from tariff refunds received in the second quarter.
Rival Procter & Gamble had previously forecast slower revenue growth for fiscal 2027, after its quarterly sales missed estimates and margins declined amid a challenging economic environment.
Colgate-Palmolive reported a 4.9% increase in net sales to $5.36 billion for the three months ended June 30, meeting analysts' expectations. Adjusted earnings per share came in at 99 cents, surpassing the analysts' estimate of 95 cents.