Procter & Gamble (NYSE:PG) reported a drop in beauty and diaper product sales, resulting in a decline in shares on Tuesday. The company missed revenue estimates, though adjusted profit exceeded expectations. Procter & Gamble also encountered what it described as “unfavorable foreign exchange impacts.”
Shares of Procter & Gamble (NYSE:PG) fell on Tuesday after the consumer products giant reported lower-than-expected revenue due to declines in sales of beauty products and diapers. For the fourth quarter of fiscal 2024, revenue was nearly unchanged from the previous year at $20.53 billion, falling short of the $20.75 billion projected by analysts surveyed by Visible Alpha. However, adjusted earnings per share (EPS) of $1.40 exceeded forecasts.
Supply-Chain Constraints Impacting Luvs
Sales in the beauty division dropped 1% year-over-year to $3.72 billion, impacted by reduced demand for the super-premium SK-II brand and challenges in Greater China. The Baby, Feminine & Family Care segment saw a 3% decline to $5.01 billion. CFO Andre Schulten noted that supply-chain constraints hindered innovation for the Luvs diaper brand.
CEO Jon Moeller acknowledged a “challenging economic and geopolitical environment” over the past year. Despite the 6% drop in share price to $159.69 as of 11 a.m. ET, Procter & Gamble’s shares remain approximately 9% higher year-to-date.
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Author Faith Yakubu 
