Church & Dwight shares fall on weak guidance

Published 01/05/2025, 12:14
Church & Dwight shares fall on weak guidance

EWING, N.J. - Church & Dwight Co., Inc. (NYSE:CHD) reported first-quarter earnings that slightly beat analyst estimates, but revenue fell short and the company provided weaker-than-expected guidance, sending shares down 3.5% in trading.

The consumer goods manufacturer posted adjusted earnings per share of $0.91, edging past the analyst consensus of $0.90. However, revenue declined 2.4% YoY to $1.47 billion, missing expectations of $1.51 billion. Organic sales decreased 1.2%, driven by a 1.4% volume decline partially offset by 0.2% positive pricing and mix.

Church & Dwight’s second-quarter earnings guidance of $0.85 per share came in well below analyst estimates of $0.95, likely contributing to the stock’s decline.

CEO Rick Dierker commented on the results, stating, "In an environment of slowing consumption, our brands are performing well. We continue to drive both dollar and volume share gains across most of our brands."

The company cited slowing category growth in the U.S. market and retailers reducing inventory levels as factors impacting sales. The Domestic Division saw a 3.0% organic decline, while the International Division grew 5.8% organically.

Church & Dwight announced strategic portfolio decisions, including plans to shut down or sell its Flawless, Spinbrush, and Waterpik showerhead businesses. These units generate approximately $150 million in annual sales with below-average profitability. The company expects to record a Q2 charge of $60 to $80 million related to these actions.

For the full year 2025, Church & Dwight forecasts organic sales growth of 0% to 2% and adjusted EPS growth of 0% to 2%.

The company also addressed its tariff exposure, projecting a 12-month run-rate gross tariff impact of about $190 million. Through portfolio decisions and supply chain actions, Church & Dwight expects to reduce this exposure by approximately 80%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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