July 31 (Reuters) - Colgate-Palmolive 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 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)
