Procter & Gamble’s Bad Quarter for Grooming Division

One of our concerns with Procter & Gamble, we still own it, is disruption by the shave clubs, Harry’s and Dollar Shave Club. PG’s latest quarterly earnings report did not belie our concerns.

Organic sales were down 6%.

Click image to enlarge.

The U.S. is the most profitable part of PG’s grooming business and it lead the decline.

From the Q&A portion of Procter & Gamble’s quarterly earnings call.

so all the reduction is being driven by the U.S. and as you know, those are our most profitable cases and higher price cases. So that’s simply what’s going on there.