NEW YORK — With sales volumes up and restructuring costs no longer weighing on results, the Procter & Gamble Co. reported double-digit earnings increases for the first quarter.
For the three months ended Sept. 30, the Cincinnati-based consumer products giant said earnings expanded 20.3 percent to $1.76 billion, or $1.26 a diluted share, beating Wall Street’s consensus estimate by 1 cent. Comparatively, the company reported earnings of $1.46 billion, or $1.04, last year.
In a statement, the company attributed the positive results to lower manufacturing costs, higher volumes and the absence of $113 million in restructuring charges that had adversely affected last year’s results.
Sales for the period increased 13 percent to $12.2 billion from $11 billion last year, largely driven by double-digit growth from the company’s beauty and health-care divisions. Favorable foreign exchange rates were responsible for 3 percent of the quarterly sales gain.
Sales in the beauty division grew 20 percent to $3.75 billion, getting a sizable boost from the Wella acquisition. Excluding Wella, beauty care sales increased 8 percent on the strength of the company’s Pantene, Head & Shoulders, Always/Whisper and Olay brands. Beauty’s contribution to earnings was $616 million, a 12 percent increase from the year-ago quarter.
The health-care division led the sales growth charge, increasing 23 percent to $1.73 billion.
A.G. Lafley, president and chief executive officer, said during a conference call, “If you think about P&G’s strategy, we are interested in the faster growing personal care, beauty care and health-care industries. I think it’s been clear that the majority, but not all, of our acquisition activity has been in these industries.”
For the quarter ending in December, the company expects sales to increase 14 to 19 percent. Sales from the recently completed Wella acquisition are expected to contribute 6 to 7 percent of that.
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews