Weak consumer spending hammers P&G, other packaged goods stocks
31/12/2025 14:06
** The S&P 500 Consumer Staples index .SPLRCS was up 1.88% YTD, compared with a 17.3% rise in the S&P 500 index .SPX this year ** Choppy spending trends from Americans forced staple packaged goods companies to look closely at their portfolios, offloading underperforming brands and product lines, and investing in different pack sizes to suit consumer needs ** Tariffs hurt margins this year, while P&G noted that the government shutdown also hurt demand ** Sector bellwether Procter & Gamble PG.N is set for its biggest annual drop since 2008; PG said it was seeing a bifurcated consumer with higher income households buying larger pack sizes, while lower-income consumers struggled to afford essentials ** The Tide-maker raised some prices to counter tariffs, but saw strength in its beauty and haircare categories, but margins continued to decline as it invested in different pack sizes ** PG tackled steep discounting from rivals in the U.S. and Europe, and exited underperforming businesses in India and the Philippines ** Kimberly-Clark KMB.N placed a $40 billion bet on Tylenol-maker Kenvue KVUE.N, even as it restructures its own business to control expenses ** KMB stock down 22%, also headed for worst year since 2008 ** Colgate-Palmolive CL.N down nearly 13% YTD, while Clorox CLX.N and Church & Dwight CHD.N down ~38 and 19% respectively
| Company | RIC | 2025 YTD | 2024 YTD | 2023 YTD |
| Procter & Gamble | PG.N | -14.1% | 14.4% | -3.3% |
| Kimberly-Clark | KMB.O | -22.5% | 7.8% | -10.5% |
| Clorox | CLX.N | -37.9% | 13.9% | 1.6% |
| Colgate-Palmolive | CL.O | -12.5% | 14.1% | 1.2% |
| Church & Dwigth | CHD.N | -19.4% | 10.7% | 17.3% |