Procter & Gamble Co., which turned 171 years old this month, reported an 8.7 percent gain in first-quarter profits as the company continued to focus on cost discipline and selective price increases.
Net income for the quarter ended Sept. 30 was $3.35 billion, or $1.03 a diluted share, up from $3.08 billion, or 92 cents a share, in the year-ago period.
Sales gained 9 percent to $22.03 billion from $20.12 billion. Price increases added 3 percent to net sales. Organic sales rose 5 percent, marking the 25th consecutive quarter in which P&G delivered organic sales growth at or above its target of between 4 and 6 percent.
Boosted by double-digit increases at Gillette, Fusion, Head & Shoulders, Cover Girl and SK-II, net sales for P&G’s beauty business gained 12 percent to $5.13 billion, while grooming grew 6 percent to $2.14 billion. Cosmetics enjoyed double-digit volume growth while hair care products advanced in the mid- to high-single digits. Organic sales in the beauty category gained 6 percent.
During an earnings call Wednesday, chairman and chief executive officer A.G. Lafley told analysts that P&G is better positioned for this downturn than in the past because it has “a stronger portfolio among categories and a stronger portfolio within the brands.”
Clayt Daley, vice chairman and chief financial officer, added that P&G’s tiered price strategy allows consumers a wide range of choices. “Innovation is still driving trade-up [to higher price points], and trade-up is still working in the market,” said Daley. “Innovation works because innovation creates value.”
During the call, Daley confirmed his plans to retire Sept. 16, 2009, after 35 years at the company. He will step down as cfo on Jan. 1 at which time Jon Moeller will succeed him. Moeller is currently vice president and treasurer.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia