US stock futures flounder amid tech weakness, Fed caution
Investing.com - Procter & Gamble (NYSE:PG) expects to incur a tariff-fueled pre-tax rise in costs of around $1 billion in its current fiscal year, the consumer goods giant said one day after it announced the departure of CEO Jon Moeller.
The Tide detergent-owner previously warned that its prices would rise due to the levies, adding a further headwind for a company already grappling with fears of tepid consumer spending.
In June, P&G outlined a two-year restructuring plan to ratchet down costs, including the reduction of 7,000 jobs and the exiting some of its product categories and brands in select markets.
On Monday, Cincinnati-based P&G said Moeller, who has overseen the company during pandemic-driven food shortages and supply chain snags, as well as a post-crisis surge in sales, will transition into a new role as executive chairman. Moeller will be succeeded by Chief Operating Officer Shailesh Jejurikar, the firm said.
Against this backdrop, P&G guided for organic revenue growth in its ongoing 2026 fiscal year of flat to 4%, compared with Bloomberg consensus estimates for an increase of 2.55%. Core earnings per share is also tipped to be between $6.83 to $7.09, versus forecasts of $6.99.
P&G flagged that the outlook includes around $1 billion before tax, or approximately $800 million after-tax, in elevated costs linked to sweeping U.S. tariffs.
"We’ve put in place strong plans to continue to deliver for all stakeholders in the current environment," Moeller said in a statement on Tuesday.
Shares of P&G inched up in premarket U.S. trading.