Procter & Gamble Lathers Up a Turnaround

No Shave November apparently had an extended run last year, with Procter & Gamble reporting weak demand for Gillette razors and other grooming products. But consumers didn’t just skip shaves: Volume fell for three out of five P&G product categories, the company reported yesterday. 

The aisle that consumers skipped most was the one with feminine and family care products, including P&G brands like Pampers, Charmin and Tampax. P&G’s volume for the category fell 5% last quarter, while its grooming biz (Gillette, Venus) dipped 2% and its healthcare segment (Oral-B, Vicks) dropped 1%. 

While P&G’s overall revenue came in below expectations, its shares ticked up yesterday as investors looked to new CEO Shailesh Jejurikar to lead the product titan in a turnaround. Chief Financial Officer Andre Schulten said last quarter will be the company’s weakest of the fiscal year. 

Silk Diapers and Vitamin C Serums

Schulten attributed low demand to consumers staggering their purchases more — in other words, shoppers are saving money by opting to shave twice a week instead of every day. P&G and other consumer companies are dealing with shoppers who wait longer between purchases, looking out for any inflation-offsetting deals. The government shutdown, which delayed SNAP benefits, hit lower-income shoppers hard at the end of 2025, prompting P&G’s finance chief to call out shutdown-related sales declines in December. 

But while P&G has seen low demand for a wide swath of products, not everything in its portfolio was in the red as the K-shaped economy played out:

• P&G’s haircare and beauty category was the only piece of its biz in which sales volume grew last quarter. Over the years, the Pantene parent has acquired high-end hair- and skincare brands like Ouai and Farmacy, which sell products ranging from $30 shampoos to $60 serums. 
• Meanwhile, in China, which is facing a consumer-spending crisis of its own, P&G’s line of Pampers Prestige baby products, featuring diapers made in part with silk, is flying off shelves. Despite China’s record-low birthrate, P&G said its baby-related business in the country is growing by double digits. 

Rinse and Repeat: There’s a balancing act when it comes to inflation. P&G’s sales rose 1% to $22.2 billion last quarter from higher prices, but demand, measured by the volume of products sold, fell as consumers were put off by higher prices, shopping less and seeking out deals. While higher-income consumers are also looking for deals, P&G has said, margins tend to be wider on luxe products even when shoppers snag a discount. Consumer product companies could also be seeing a comeback of the “Lipstick Index” theory: When shoppers feel they have to skimp on some purchases, they’re more likely to splurge on small luxuries like high-end makeup.