Colgate-Palmolive (CL) posted weaker-than-expected second quarter earnings Friday, but tweaked its guidance for full year sales even as it sees a modest decline in overall profits as marketing spending increases.
Colgate-Palmolive said earnings for the three months ending in June came in at 68 cents per share, down 6.8% from the same period last year and 4 cents shy of the Street consensus forecast. Group revenues, the company said, were essentially flat to the previous year at $3.866 billion and narrowly missed analysts' estimates of a $3.88 billion tally. Gross margins, however, improved by 50 basis points to 59.7%, the company said.
"As we look ahead, based on current spot rates, we continue to expect 2019 net sales to be flat to up low-single-digits, with organic sales up between 2% and 4%, though we now expect to be toward the higher end of that range as we continue to plan for increased investment behind our brands, higher pricing and strong innovation, particularly behind our core businesses," said CEO Noel Wallace.
"We are also excited about expanding our premium skin care portfolio with the recent announcement of our agreement to acquire the Filorga skin care business, which is not included in our guidance," he added.
Colgate-Palmolive shares were marked 0.6% higher at the start of trading Friday to change hands at $72.46 each, a move that would extend the stock's year-to-date gain to around 20%.