Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Colgate Warns Higher Prices Will Scare Away Some Shoppers

Stock MarketsJan 28, 2022 19:52
Saved. See Saved Items.
This article has already been saved in your Saved Items
2/2 © Bloomberg. Colgate-Palmolive Co. toothbrushes hang on display for sale at a Dollar Tree Inc. store in Louisville, Kentucky, U.S., on Friday, Aug. 24, 2018. Dollar Tree Inc. is scheduled to release earnings figures on August 30. Photographer: Luke Sharrett/Bloomberg 2/2

(Bloomberg) -- Colgate-Palmolive (NYSE:CL) Co. said the recent wave of price hikes on household goods will probably deter some buyers.

Like its peers, Colgate has started to charge more to deal with elevated raw materials and logistics costs, and it’s now watching for shoppers’ reaction. Given the magnitude of the price hikes, “you will see a fall off in volume,” Chief Executive Officer Noel Wallace said Friday during the company’s fourth-quarter conference call. 

Since price increases are broad-based across the industry, Colgate expects the reaction won’t be as sharp as it normally would be. The company’s organic sales, which strips out currency swings, grew 3% in the fourth quarter -- but the volume of products sold was flat compared to a year earlier.

U.S. consumer spending, after adjusting for inflation, declined last month by the most since February. This suggests Americans are pulling back amid a renewed Covid-19 spike and the highest inflation in nearly 40 years. Companies are likely to still see revenue climb -- but the growth will come from higher prices instead of more units being sold.  

Church & Dwight (NYSE:CHD) reported a similar trend, saying Friday that while its fourth-quarter organic sales growth exceeded its outlook, that was due to higher prices. Volume dipped 1.7%. 

Colgate plans on spending as much as $240 million before taxes to streamline its supply chain and reduce costs. It’s expected to save as much as $110 million annually, with the benefits starting to be observed in the second half of the year. The company will also try to retain consumers by making its products more appealing and introducing new ones. 

Colgate shares fell 0.7% at 12:52 p.m. in New York trading. The stock had climbed 6% in the 12 months through Thursday, below the 16% gain for the S&P 500 Consumer Staples Index. Church & Dwight shares rose 3.5% Friday; the stock had gained 12% in the year through Thursday. 

©2022 Bloomberg L.P.

Colgate Warns Higher Prices Will Scare Away Some Shoppers

Related Articles

Dow Futures Lift as Fears of Slowing Growth Remain
Dow Futures Lift as Fears of Slowing Growth Remain By - May 25, 2022

By Oliver Gray - Dow futures moved higher in Tuesday’s evening deals after major benchmark indices finished mixed, with technology companies retreating after social...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email