Proctor & Gamble is raising prices on a range of goods as higher commodity and freight costs are set to take a bite out of its profits.
The maker of Pampers diapers, Tide detergent and Crest toothpaste said Tuesday it has been raising prices on product lines including baby, family, home and fabric care. In the last few weeks, it has started telling retailers that it will boost prices on more categories including grooming, skin care and oral care.
“The degree and timing of these moves are very specific to the category, brand and sometimes the product form within a brand,” Chief Financial Officer Andre Schulten said during a call to discuss quarterly results. “This is not a one-size-fits-all approach.”
And though it's still early, the company has yet to see “notable changes” in consumer behavior in reaction to the higher prices, he said.
Schulten said the Cincinnati company now expects a commodity hit of $2.1 billion in fiscal 2022. That’s up from an estimated $1.8 billion in July.
P&G also sees higher transportation costs, reflecting in part a shortage of truck drivers and soaring diesel fuel costs. In July, the company estimated that would cost an extra $100 million this fiscal year. Tuesday, the consumer goods maker doubled that estimate to $200 million.
Combined, the $2.3 billion in higher costs will lower fiscal 2022 earnings by about 90 cents per share.
Last week the Labor Department reported that wholesale prices rose a record 8.6% in September compared to a year ago, the largest advance since the 12-month change was first calculated in 2010. The jump in inflation this year reflects higher prices for food and energy. Core inflation at the wholesale level, excluding volatile energy and food, was up 0.2% in September from August and was 6.8% higher over the past 12 months.
P&G maintained its annual guidance and doesn’t believe that inflation is here to stay, calling it a “temporary bottom line rough patch to grow through.”
"When opportunities allow, we will close a couple of price increases with new product innovations, adding value for consumers along the way," Schulten said.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence.
