Colgate-Palmolive reaffirms annual sales forecast on weak North America demand

PepsiCo

31/07/2026 13:23

July 31 (Reuters) - Colgate-Palmolive CL.N on Friday reaffirmed its annual sales forecast even after posting a quarterly rise as the toothpaste maker continues to grapple with muted demand in North America, sending its shares down 2.5%.
Higher food and fuel prices tied to the Middle East conflict have hit lower-income shoppers hard, making it harder for U.S. consumer goods companies to meet demand across both budget and premium segments.    
The company's North America organic sales fell 3% in the quarter, driven by a 3.9% drop in volumes, as slower category growth, market share losses, increased competition and inventory reductions at key retailers weighed on sales.
It, however, continues to expect annual net sales to grow 2% to 6%, and raised the base of its 2026 adjusted earnings forecast to mid-single-digit growth, up from its prior low- to mid-single-digit forecast.
Colgate, however, warned additional headwinds relative to the forecast, as 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 PG.N on Tuesday forecast slower revenue growth in fiscal 2027 after quarterly sales missed estimates and margins fell under a "very challenging geopolitical and economic environment".
Colgate-Palmolive posted a 4.9% rise in net sales to $5.36 billion for the three months ended June 30, in line with analysts' estimates, according to data compiled by LSEG.
Adjusted earnings per share of 99 cents surpassed analysts' estimate of 95 cents.

 (Reporting by Sanskriti Shekhar in Bengaluru; Editing by Vijay Kishore)
 ((Sanskriti.Shekhar@thomsonreuters.com))